Emerging markets-focused investment manager Gramercy Funds Management has reached a final close for Gramercy Distressed Opportunity Fund III with nearly US$1 billion in capital commitments. The fund will invest opportunistically in dislocated and defaulted sovereign, quasi-sovereign and corporate credits, as well as actively short bonds and hedge long positions. To date, the fund has called 50 percent of its capital and made 15 investments across multiple sectors in Latin America, Central and Eastern Europe and MENA.