Key Takeaways
- • Kyma Capital, the London-based hedge fund founded by former GSO Capital Partners investor Akshay Shah, delivered net returns of around 48% in 2025, according to a Bloomberg report.
- • The 2025 result was the firm's strongest annual performance since its 2019 launch and far exceeded the 12.5% average return across the hedge fund industry, per Hedge Fund Research.
- • Gains were led by Kyma's position in Swiss pharmaceutical company Idorsia, where the fund was one of the largest creditors; the fund also profited from distressed Liquid Telecom debt and discounted loans at French healthcare group Emeis, formerly Orpea.
- • Kyma manages approximately $440m and focuses on globally traded, mid-sized distressed capital structures with looming maturities and tight credit spreads.
Summary
Kyma Capital, a London-based hedge fund founded by former GSO Capital Partners investor Akshay Shah, delivered net returns of around 48% in 2025, driven by a series of successful distressed debt investments, according to a report by Bloomberg. The report, citing unnamed people familiar with the matter, said the performance was the firm's strongest annual result since it launched in 2019. The figure significantly outpaced the broader hedge fund industry, which returned an average of 12.5% last year, according to Hedge Fund Research.
The largest contributor was Kyma's investment in Swiss pharmaceutical company Idorsia, where the fund emerged as one of the company's largest creditors. Bondholders agreed to extend debt maturities and inject additional financing, and the notes were restructured with potential upside linked to experimental drug assets.
The fund also benefited from its positions in Liquid Telecom. Kyma acquired debt at distressed levels before prices recovered close to par following fresh equity injections from investors including Alphabet and Nvidia. Additional gains came from investments in French healthcare group Emeis, formerly Orpea, where discounted loans were later refinanced.
Kyma manages approximately $440m in assets and focuses on globally traded, mid-sized distressed capital structures. The firm targets situations where looming maturities and tight credit spreads create market dislocations. The primary source also referenced a related Hedgeweek report on Promeritum's decision to exit emerging-market distressed debt trades, though the details of that story were not included.
The largest contributor was Kyma's investment in Swiss pharmaceutical company Idorsia, where the fund emerged as one of the company's largest creditors. Bondholders agreed to extend debt maturities and inject additional financing, and the notes were restructured with potential upside linked to experimental drug assets.
The fund also benefited from its positions in Liquid Telecom. Kyma acquired debt at distressed levels before prices recovered close to par following fresh equity injections from investors including Alphabet and Nvidia. Additional gains came from investments in French healthcare group Emeis, formerly Orpea, where discounted loans were later refinanced.
Kyma manages approximately $440m in assets and focuses on globally traded, mid-sized distressed capital structures. The firm targets situations where looming maturities and tight credit spreads create market dislocations. The primary source also referenced a related Hedgeweek report on Promeritum's decision to exit emerging-market distressed debt trades, though the details of that story were not included.
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