Tom Wagner, a former managing director and co-head of special situations at Goldman Sachs, has launched a pair of hedge funds to invest in distressed credit and event driven opportunities.

Wagner’s New York-based Knighthead Capital this month launched the Knighthead Domestic fund and a Cayman Islands version, Knighthead Offshore, with reported combined total assets of US$700 million.

The firm declined to disclose the funds’ performance estimates or current assets.

Prior to founding Knighthead, Wagner ran the high-yield distressed trading desk at Goldman. Ara Cohen, a Redwood Capital alumnus, is also a principal in the firm.