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KKR Takes Minority Stake in Hedge Fund BlackGold Capital

merger-acquisitionNew York (HedgeCo.Net) – Global investment firm KKR & Co. L.P. is acquiring a 24.9% interest in credit-oriented hedge fund BlackGold Capital Management, the WSJ reports.

Founded in 2006 by co-founders Erik Dybesland and Adam Flikerski, Blackgold manages $1.4 billion in assets and specializes in energy and hard asset investments.

The investment in BlackGold is part of KKR’s efforts to develop the firm’s hedge fund platform, which is co-led by Girish Reddy and Todd Builione, and to expand the firm’s energy business, which is led by Marc Lipschultz.

“Through this strategic investment in BlackGold, we are partnering with an outstanding team with an excellent track record of delivering returns to investors.” Todd Builione, co-head of Hedge Funds at KKR, said. “We are thrilled to add BlackGold to our hedge fund platform and we look forward to a long-term partnership with Erik, Adam and the full BlackGold team.”

BlackGold’s management team will continue to manage the business independently, and BlackGold’s investment strategies will not change as a result of KKR’s investment. All of BlackGold founders’ capital will remain invested in the funds and the majority of the proceeds received from this transaction will be re-invested in the funds – maintaining full alignment with their investors. Pro forma this transaction, the BlackGold management team will own 75.1% of BlackGold.

KKR’s hedge fund platform includes its approximately $10 billion multi-manager hedge fund business (KKR Prisma) and a Strategic Stakes & Seeding business that invests the firm’s balance sheet to acquire minority stakes in hedge fund managers. BlackGold represents KKR’s second minority stake in a hedge fund manager, following the 2013 investment in Nephila Capital, an insurance-linked securities manager with approximately $10 billion under management.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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