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Certares-Knighthead Travel Distress Fund Raises $1.5 Billion

  • The firms say abundant distressed opportunities persist
  • Fund closed with $1.5 billion, ahead of $1 billion goal
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Knighthead Capital Management and Certares Management raised $1.5 billion for their fund focused on distressed travel and tourism investments, closing the vehicle to new money after exceeding an initial $1 billion goal.

The firms will deploy the capital into a seemingly tough environment for distressed investing: troubled U.S. company debt has shrunk to less than $80 billion, down from more than half a trillion a year ago, and easing pandemic restrictions are giving many travel companies a boost. Still, founders of the New York-based firms -- who recently won a bidding war to bring Hertz Global Holdings Inc. out of bankruptcy -- say opportunities remain.