Former King Street Capital partner Paul Goldschmid is preparing to roll out one of 2025’s largest hedge fund launches, with his new credit-focused firm Harvey Capital Partners expected to debut in Q4 with more than $1bn under management, according to a report by Bloomberg.

Goldschmid, who spent nearly two decades at King Street and sat on its global investment committee, co-founded Harvey Capital with David Cohen, a former Two Sigma executive. Goldschmid will oversee investing, while Cohen will lead business operations.

The fund, named after Goldschmid’s father, has already secured $500m in commitments as of June, despite a tough fundraising environment in which many institutional investors remain constrained by illiquid private equity holdings.

Harvey Capital has assembled a senior team of partners including John Sette (ex-Vista Equity) as head of trading, Bob Ryan (ex-Silver Point) leading special opportunities research, and two King Street alumni – McLean Copus running corporate credit research and Daniel Ehrmann heading restructuring. Ian Cohen, formerly of Boundary Creek Advisors, has joined as CFO and CCO.

Goldschmid’s launch comes amid a year with only a handful of large hedge fund debuts expected, including Ning Jin’s Avantyr Capital Partners and Gilberto Marcheggiano’s Agave Capital Management, with both also targeting around $1bn.