Key Takeaways
- • Fidelity Investments closed Fidelity Credit Opportunities Fund II at $729 million on July 15, 2025, exceeding its $500 million fundraising target by 46% and more than doubling the $300+ million raised by its 2020 predecessor fund.
- • Fund II is a long-only opportunistic credit strategy focused on stressed, distressed, and restructured debt or equity instruments in the U.S. publicly traded secondary corporate credit market, directly mirroring the predecessor fund's top-quartile Preqin performance.
- • The fund is co-managed by Harley Lank (head of High Income & Alternatives at Fidelity), Nate Van Duzer, and Bill Wall—a portfolio management team averaging more than 25 years of combined experience in public and private markets.
- • Fidelity's closed-end fund offering draws on over 45 years of institutional investment experience in stressed and distressed credit, supported by integrated special situations teams, analysts, and traders across the firm's platform.
- • Strong institutional demand underscores continued investor appetite for Fidelity's alternative investment vehicles, particularly in credit-focused strategies where the firm's operational depth and market expertise command investor confidence.
Summary
Fidelity Investments announced the final close of Fidelity Credit Opportunities Fund II LP on July 15, 2025, at approximately $729 million in committed capital. The fundraise significantly exceeded the firm's initial target of $500 million and more than doubled the capital raised by the fund's 2020 predecessor, demonstrating accelerating institutional demand for Fidelity's alternative credit strategies. The oversubscription reflects robust support from a broad investor base seeking exposure to opportunistic credit opportunities.
Fund II deploys capital in a specialized mandate focused on stressed, distressed, and restructured debt or equity instruments operating in the U.S. publicly traded secondary corporate credit market. The strategy directly mirrors the investment approach of Fidelity Distressed Opportunities Fund I, which achieved top-quartile performance according to Preqin data—an important track record validation for limited partners evaluating the new vintage. This consistency in strategy between vintages provides continuity while the larger fund size enables the team to scale operations and deploy capital across a broader opportunity set.
The portfolio management team is led by Harley Lank, who serves as portfolio manager and head of Fidelity's High Income & Alternatives division. Lank co-manages the fund alongside Nate Van Duzer and Bill Wall, both managing directors of Special Situations at Fidelity Investments. The three-person team combines more than 25 years of average experience in both public and private markets, representing substantial domain expertise in distressed credit analysis and restructuring situations.
Fidelity's competitive positioning in this space is anchored by 45+ years of accumulated experience in stressed, distressed, and restructured investments. The firm leverages integrated resources including dedicated special situations teams, credit analysts, and traders to optimize the investment process. According to Lank, this depth of organizational resources—combined with the team's deliberate investment approach—differentiates Fidelity's offering and delivers enhanced client value relative to specialized competitors.
The $729 million close positions Fund II among larger private credit vehicles and signals sustained institutional capital flows into alternative fixed-income strategies during a period of elevated credit volatility and restructuring activity in public markets.
Fund II deploys capital in a specialized mandate focused on stressed, distressed, and restructured debt or equity instruments operating in the U.S. publicly traded secondary corporate credit market. The strategy directly mirrors the investment approach of Fidelity Distressed Opportunities Fund I, which achieved top-quartile performance according to Preqin data—an important track record validation for limited partners evaluating the new vintage. This consistency in strategy between vintages provides continuity while the larger fund size enables the team to scale operations and deploy capital across a broader opportunity set.
The portfolio management team is led by Harley Lank, who serves as portfolio manager and head of Fidelity's High Income & Alternatives division. Lank co-manages the fund alongside Nate Van Duzer and Bill Wall, both managing directors of Special Situations at Fidelity Investments. The three-person team combines more than 25 years of average experience in both public and private markets, representing substantial domain expertise in distressed credit analysis and restructuring situations.
Fidelity's competitive positioning in this space is anchored by 45+ years of accumulated experience in stressed, distressed, and restructured investments. The firm leverages integrated resources including dedicated special situations teams, credit analysts, and traders to optimize the investment process. According to Lank, this depth of organizational resources—combined with the team's deliberate investment approach—differentiates Fidelity's offering and delivers enhanced client value relative to specialized competitors.
The $729 million close positions Fund II among larger private credit vehicles and signals sustained institutional capital flows into alternative fixed-income strategies during a period of elevated credit volatility and restructuring activity in public markets.
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