HOUSTON & NEW YORK–(BUSINESS WIRE)–
KKR & Co. L.P. (NYSE:KKR), a leading global investment firm, and
BlackGold Capital Management (“BlackGold”), a credit-oriented hedge fund
specializing in energy and hard asset investments, today announced that
KKR is acquiring a 24.9% interest in BlackGold. Financial terms of the
transaction were not disclosed.
Established in 2006 by co-founders Erik Dybesland and Adam Flikerski,
who have spent their entire careers in the energy sector, BlackGold
specializes in energy and hard asset event-driven strategies while
investing throughout the capital structure. The nature of BlackGold’s
strategy and investments facilitates repeatable low correlation and
volatility returns relative to the broader market and commodities,
providing meaningful diversification benefits to its investors.
“Through this strategic investment in BlackGold, we are partnering with
an outstanding team with an excellent track record of delivering returns
to investors. 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,” Todd Builione, co-head of Hedge Funds at
KKR, said.
Erik Dybesland and Adam Flikerski stated: “KKR has nearly three decades
of experience investing in the energy sector and maintains a significant
presence and technical expertise in the industry. Having access to KKR’s
global network of relationships, institutional infrastructure and
management expertise will introduce new areas of opportunity for
BlackGold and our investors. We are confident that our partnership will
strengthen relationships with our counterparties and within our
investment universe, while enhancing the durability and unique
capabilities of our franchise.”
Marc Lipschultz, KKR’s Global Head of Energy & Infrastructure, added:
“We are always looking for exceptional teams with whom we can partner,
and this investment marks the culmination of those efforts. We believe
their deep industry knowledge coupled with our energy franchise will
benefit both parties and lead to new investment opportunities for our
respective investors.”
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.
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. 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.
The investment by KKR was made by the firm and not through KKR’s
investment funds.
About BlackGold
BlackGold Capital Management was founded in 2006 by Erik Dybesland and
Adam Flikerski. BlackGold is a leading investment manager specializing
in event-driven, energy and hard asset related credit. BlackGold manages
assets primarily for family offices, insurance companies, hospitals,
pensions, endowments and foundations, and is dedicated to achieving
consistent volatility-adjusted performance, coupled with low correlation
to commodity prices and the broader markets. BlackGold is based in
Houston, TX and manages $1.4 billion in assets. Further information can
be requested through BlackGold’s website at www.blackgoldcap.com.
About KKR
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world-class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners’ capital and brings opportunities to others through its capital
markets business. References to KKR’s investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE:KKR), please visit KKR’s website at www.kkr.com.
Media
KKR
Kristi Huller, 212-230-9722
Kristi.Huller@kkr.com
Source: KKR & Co. L.P.