In 2025, Harvey Capital Partners emerged as a new force in the hedge fund landscape, navigating global credit markets with a distinctive long/short approach. Founded by Paul Goldschmid, a former long-tenured partner at King Street Capital Management, and David Cohen, ex-global head of investor relations at Two Sigma, the New York-based firm entered the market with a clear mission: to exploit complex, process-driven investment opportunities across corporate, structured, and asset-backed credit. Within months of its launch, Harvey Capital raised over $1 billion, eventually growing to $1.8 billion in assets, one of the largest hedge fund debuts of the year.
Unlike many large multi-strategy firms, Harvey Capital operates as a boutique platform emphasizing deep analytical work and research-driven decision-making. Its strategy targets idiosyncratic credit investments, liquidations, claims, and select equity opportunities that require specialized knowledge and hands-on engagement. By combining Goldschmid’s extensive experience in distressed and special situation investing with Cohen’s operational and investor-relations expertise, Harvey Capital has positioned itself to navigate market complexities that larger, less nimble funds often struggle to exploit.
The firm’s approach reflects a broader trend in credit markets: as banks retreat from certain lending activities, sophisticated hedge funds increasingly occupy the space, capturing inefficiencies and structural distortions. Harvey Capital Partners embodies this trend, demonstrating that focused teams, careful research, and strategic flexibility can drive meaningful results in a competitive and ever-changing market environment.
Founding and Leadership
Harvey Capital Partners was founded in early 2025 by Paul Goldschmid and David Cohen, both seasoned professionals with deep expertise in finance and hedge fund management.
Paul Goldschmid spent nearly two decades at King Street Capital Management, developing and managing credit-focused strategies and establishing a reputation for his skill in navigating distressed and complex investment situations. His experience gave him the insight and analytical discipline necessary to identify and capitalize on inefficiencies in the credit markets.
David Cohen brought complementary skills to the partnership. Having served as the global head of investor relations at Two Sigma, he specialized in structuring capital-raising efforts and maintaining strong institutional relationships. Cohen’s operational acumen and experience with sophisticated investors provided the foundation for Harvey Capital’s ability to raise substantial capital quickly, without relying on traditional seeding or separately managed accounts.
The name Harvey Capital Partners honors Goldschmid’s late father, Harvey Goldschmid, a respected legal scholar and former SEC commissioner, signaling the firm’s commitment to rigorous research, integrity, and principled market engagement.
Investment Strategy
Harvey Capital Partners focuses on long/short credit strategies, emphasizing special situations that require deep analytical work. The firm’s investments span corporate, structured, and asset-backed credit, as well as claims, liquidations, and select equity opportunities.
Special Situations Approach
The firm seeks opportunities that arise from market inefficiencies, complex legal or financial structures, or distressed scenarios. By identifying investments where traditional valuation models fail to capture potential value, Harvey Capital aims to generate asymmetrical returns for its investors.
Research and Analysis
A cornerstone of the strategy is intensive research. The firm’s small, dedicated team analyzes corporate and structured credit, liquidations, and other special situations, often engaging directly with companies and stakeholders to understand the underlying risks and opportunities.
Long/Short Credit
Harvey Capital’s long/short approach allows it to take both positions that benefit from undervalued assets and positions that profit from deteriorating conditions. This flexibility is particularly valuable in complex credit markets, where risk and opportunity often coexist in the same transaction.
Team and Structure
Harvey Capital Partners operates with a focused, boutique structure. Despite managing billions in assets, the firm maintains a small team of specialists across research, restructuring, and trading disciplines. This allows for nimble decision-making and close alignment between the investment team and the firm’s strategic objectives.
Senior team members include professionals with backgrounds at King Street Capital Management, Silver Point Capital, Vista Equity Partners, and other leading firms. This concentration of expertise supports the firm’s ability to evaluate highly complex situations and execute sophisticated investment strategies with precision.
Market Position and Capital Growth
The firm’s launch in 2025 drew significant attention, raising over $1 billion in initial capital and growing to $1.8 billion within months. This achievement was notable because Harvey Capital did not rely on separately managed accounts or traditional seeding arrangements, demonstrating strong investor confidence in its founders and investment philosophy.
By focusing on boutique, high-complexity investments, Harvey Capital differentiates itself from larger multi-strategy firms. Its ability to deploy capital efficiently in specialized credit markets positions it to benefit from structural dislocations, distressed opportunities, and other scenarios that require deep expertise.
Opportunities and Challenges
Harvey Capital operates in a market characterized by both opportunity and complexity. Credit markets can present episodic investment windows, particularly in distressed or structured situations. Competing against larger funds with broader resources requires the firm to continually leverage its specialized knowledge and analytical rigor.
Additionally, regulatory shifts and macroeconomic volatility can affect credit conditions, creating both risk and opportunity. Harvey Capital’s small, agile team is positioned to respond quickly to such developments, using deep research and process-driven analysis to capitalize on inefficiencies while mitigating risk.
Conclusion
Harvey Capital Partners illustrates the power of a focused, boutique approach to hedge fund investing. By emphasizing research, deep analysis, and specialization in complex credit and special situations, the firm has quickly established itself as a credible player in the market. Its growth demonstrates that, even amid competitive and volatile markets, disciplined strategy and expert leadership can generate meaningful results. Looking ahead, Harvey Capital’s model offers a template for how smaller, focused funds can thrive by combining precision, insight, and agility in sophisticated financial markets.
FAQs
What is Harvey Capital Partners?
Harvey Capital Partners is a New York-based hedge fund specializing in long/short credit and special situations investments.
Who founded Harvey Capital Partners?
The firm was co-founded by Paul Goldschmid, formerly of King Street Capital, and David Cohen, formerly of Two Sigma.
What is a special situations investment?
Special situations are complex opportunities, such as distressed debt or liquidations, requiring deep research and process-driven analysis.
How much capital has Harvey Capital raised?
The firm launched with over $1 billion in assets and grew to $1.8 billion by early 2026.
Why is Harvey Capital notable?
Its rapid growth without relying on seeding or separately managed accounts highlights its founders’ expertise and investor confidence.
