Blackstone has bought into private equity peer Kohlberg & Company through its specialist fund targeting stakes in leading alternative asset managers.
The firm has tapped its Strategic Capital Holdings Fund, part of its hedge fund solutions business, to pick up a passive, minority interest in Kohlberg & Co.
Blackstone Alternative Asset Management is the world’s largest discretionary investor in hedge funds, with approximately $75bn in assets under management.
Kohlberg & Co was launched by PE pioneer Jerome Kohlberg back in 1987, leaving buyout giant KKR which he had helped found a decade earlier to focus on more mid-market deals with his new outfit.
Kohlberg & Co has since raised eight private equity funds totalling more than $7.5bn of committed equity capital.
Blackstone said its minority investment would help provide long term capital to support Kohlberg’s investing platforms.
Kohlberg managing partner Sam Frieder said, “We are proud to partner with Blackstone, another trusted name in the industry, who shares our deep commitment to investors and long track record of success.
“With this investment, Kohlberg is well positioned to build upon its 30 year history with continued growth in the years ahead.”
Scott Soussa, Head of BAAM’s Strategic Capital Group, added, “With a strong track record of investing over three decades, Kohlberg has established itself as a clear leader in middle market private equity.
“The firm’s experienced management team, deep bench of investing talent and differentiated value creation model positions it well for continued growth, and we look forward to partnering with them in the years ahead.”