London-based hedge fund Kite Lake Capital Management has secured approximately $700m in new capital. The firm briefly reopened its flagship KL Special Opportunities Fund for subscriptions before closing it again, according to a report by Bloomberg.
The report cites a company spokesperson saying saying that the inflows, which came from over 70 existing and new investors, increased Kite Lake’s total assets under management to around $3.5bn, with the flagship fund now accounting for $2.75bn.
The move followed an 18-month period during which the fund remained closed, and comes after the firm strengthened its credit team and saw a modest rebound in mergers and acquisitions activity. The raise surpassed Kite Lake’s original target of $500m, according to an investor letter seen by Bloomberg News.
Founded in 2011 by Massi Khadjenouri and Jan Lernout and co-managed by Jamie Sherman, Kite Lake focuses on event-driven strategies including merger arbitrage, equity special situations, credit, and distressed debt. The KL Special Opportunities Fund returned 18% in 2025 and has posted positive results every year since inception. In the first quarter of 2026, it gained 2.5%, while the Emerging Markets Credit Fund returned 4.6%.
