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 the inaugural 2020 vintage.
- • 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, mirroring the predecessor fund's top-quartile performance track record according to Preqin data.
- • The fund is co-managed by Harley Lank (head of High Income & Alternatives), Nate Van Duzer, and Bill Wall—all managing directors in Fidelity's Special Situations group—with combined experience exceeding 75 years across public and private markets.
- • Fidelity leverages more than 45 years of institutional expertise in distressed and restructured investing, drawing on integrated special situations teams, analysts, and traders to optimize the investment process for institutional clients.
- • Strong demand from a broad investor base reflects growing appetite for Fidelity's alternative investment vehicles, positioning the firm's credit strategies as increasingly competitive in the alternatives market.
Summary
Fidelity Investments announced the final close of Fidelity Credit Opportunities Fund II at approximately $729 million on July 15, 2025, marking a significant milestone for the firm's alternatives division. The fundraise substantially exceeded the fund's target of more than $500 million in committed capital and represents more than a doubling of the firm's first-vintage credit opportunities fund raised in 2020, demonstrating growing institutional demand for Fidelity's alternative credit strategies.
Fund II operates as a long-only opportunistic credit vehicle with a deliberate focus on stressed, distressed, and restructured debt or equity instruments. The strategy concentrates on the U.S. publicly traded secondary corporate credit market, directly mirroring the investment approach of its predecessor, Fidelity Distressed Opportunities Fund I, which achieved top-quartile performance metrics as reported by Preqin, the alternative assets data provider. This track record has evidently strengthened investor confidence in the team's execution capability and risk management discipline.
The portfolio management team consists of Harley Lank, who serves as head of the High Income & Alternatives division and portfolio manager, alongside co-managers Nate Van Duzer and Bill Wall, both managing directors in Fidelity's Special Situations group. Collectively, the three managers average more than 25 years of experience in both public and private markets, providing significant depth in credit analysis and opportunity identification. Lank highlighted that "demand for Fidelity's alternative investment vehicles continues to grow as more and more investors recognize our team's deep industry knowledge, deliberate approach, and commitment to delivering exceptional value to our clients."
Fidelity's competitive positioning in this space is reinforced by more than 45 years of cumulative institutional experience in stressed, distressed, and restructured investments. The firm emphasizes the breadth and depth of its resources, including integrated special situations teams, analysts, and traders that enhance the investment process and client experience. The successful close of Fund II, driven by strong support from a broad investor base, reflects institutional confidence in both the management team's expertise and the structural opportunity set within the secondary corporate credit market.
Fund II operates as a long-only opportunistic credit vehicle with a deliberate focus on stressed, distressed, and restructured debt or equity instruments. The strategy concentrates on the U.S. publicly traded secondary corporate credit market, directly mirroring the investment approach of its predecessor, Fidelity Distressed Opportunities Fund I, which achieved top-quartile performance metrics as reported by Preqin, the alternative assets data provider. This track record has evidently strengthened investor confidence in the team's execution capability and risk management discipline.
The portfolio management team consists of Harley Lank, who serves as head of the High Income & Alternatives division and portfolio manager, alongside co-managers Nate Van Duzer and Bill Wall, both managing directors in Fidelity's Special Situations group. Collectively, the three managers average more than 25 years of experience in both public and private markets, providing significant depth in credit analysis and opportunity identification. Lank highlighted that "demand for Fidelity's alternative investment vehicles continues to grow as more and more investors recognize our team's deep industry knowledge, deliberate approach, and commitment to delivering exceptional value to our clients."
Fidelity's competitive positioning in this space is reinforced by more than 45 years of cumulative institutional experience in stressed, distressed, and restructured investments. The firm emphasizes the breadth and depth of its resources, including integrated special situations teams, analysts, and traders that enhance the investment process and client experience. The successful close of Fund II, driven by strong support from a broad investor base, reflects institutional confidence in both the management team's expertise and the structural opportunity set within the secondary corporate credit market.
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