KKR & Co has acquired a 24.9 per cent interest in BlackGold Capital Management, a credit-oriented hedge fund specialising in energy and hard asset investments.
Financial terms of the transaction have not been disclosed.
Established in 2006 by co-founders Erik Dybesland and Adam Flikerski, who have spent their entire careers in the energy sector, BlackGold specialises in energy and hard asset event-driven strategies while investing throughout the capital structure.
"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," says Todd Builione, co-head of hedge funds at KKR.
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. The BlackGold management team will own 75.1 per cent of BlackGold.
The investment by KKR was made by the firm and not through KKR's investment funds.