Harvey Capital Partners, the credit-focused hedge fund firm founded by former King Street Capital Management partner Paul Goldschmid, has raised more than $1.8bn for its debut fund, marking one of the largest hedge fund launches of 2025, according to a report by Bloomberg.

The fundraising stands out at a time when many new managers are choosing to operate within large multi-strategy platforms or rely on seed capital from established hedge funds. According to people familiar with the matter, Harvey Capital raised the capital without giving up equity or revenue to a seed investor and without deploying separately managed accounts, instead placing all investor capital into a single commingled vehicle.

Goldschmid spent nearly 19 years at King Street, where he served on the firm’s global investment committee and co-managed hedge fund and drawdown strategies investing across corporate and structured credit, claims and liquidation. Harvey Capital began trading in the fourth quarter of 2025.

Harvey Capital is structured as a drawdown fund, calling capital as investment opportunities arise. The firm has also imposed an internal cap on assets under management and, in an uncommon move, will require investor approval to exceed that limit, according to the people.

Goldschmid co-founded the firm alongside David Cohen, a former Two Sigma Investments executive. The firm has built a 16-person team, recently strengthening its senior ranks with the appointment of William De Wulf, formerly of Strategic Value Partners, as head of Europe.