Stellex Capital Management LP, the private-equity firm run by former heads of the distressed investing team at Carlyle Group LP, is seeking as much as $1 billion for a debut fund to buy troubled assets in the U.S. and Europe, said two people with knowledge of the fundraising.

The firm, with offices in New York and London, has set a target of $750 million and can raise an additional $250 million before the fund reaches its limit, said the people, who asked not to be named because the information is private. The fund will focus on control investments, the people said.

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