Stable Asset Management, which takes GP stakes in hedge funds and other alternative investment firms, has strengthened its push into private credit by taking an ownership stake in European financing specialist Kinnerton Hill Capital, according to a report by Bloomberg.

The New York-based investment firm led a $150m investment in London-headquartered Kinnerton, which was established in 2024 by Jacob Ucar, formerly head of credit opportunities at Park Square Capital.

Kinnerton focuses on providing structured capital solutions to mid-sized European businesses, offering financing across the capital structure, including senior and junior debt, preferred equity and mezzanine capital.

The transaction underscores Stable’s increasing focus on backing private credit managers alongside its established hedge fund investments. Chief executive Erik Serrano Berntsen said the firm sees significant opportunities in financing businesses facing a more challenging operating environment.

According to Berntsen, the current market favours managers capable of delivering bespoke financing solutions, with Kinnerton’s ability to provide multiple forms of capital positioning it to benefit from these trends.

Stable, which manages $5.2bn in assets, remains active in the sector and is reportedly close to completing another investment with a US-based manager. The firm also retains additional capital for future transactions.

Alongside private credit managers, Stable has backed a number of hedge fund launches and specialist investment firms. These include multi-manager platform The Quarry, founded by Peter Bremberg, and quantitative investment firm Machina Capital, led by chief investment officer Arnaud de Lasteyrie.

The firm has also invested in differentiated asset management businesses, including Derby Lane Partners, established by former BDT & MSD Partners executive Adam Piekarski, and HarbourView Equity Partners, the media investment firm founded by Sherrese Clarke Soares.