Hedge Fund Kite Lake Raises $700 Million and Closes to New Cash

Kite Lake Capital Managementraised about $700 million in new cash, signaling improving investor appetite for hedge funds.

The London-based firm, which specializes in event-driven investing, reopened its flagship KL Special Opportunities Fund for a day to take in the money and closed it to further capital again, according to a representative for the firm.

The amount, raised from more than 70 existing and new investors, lifted firm-wide assets to about $3.5 billion, with KL Special Opportunities Fund alone accounting for $2.75 billion.

The decision to reopen the fund for further inflows after 18 months came after Kite Lake bolstered ...