Blackstone Invests in Kohlberg

Blackstone has acquired a minority equity interest in private equity investor Kohlberg & Company.

The investment by Blackstone was made through its Strategic Capital Holdings Fund which is part of Blackstone Alternative Asset Management (BAAM), the firm’s hedge fund business which specializes in acquiring stakes in alternative asset managers.

Kohlberg & Company invests in companies in the industrial manufacturing; consumer products; business services; healthcare services; and financial services sectors. The firm concentrates on companies with EBITDAs between $20 million and $100 million where it can invest between $50 million and $200 million of equity. Kohlberg & Company was founded in 1987 and is based north of New York City in Mt. Kisco, NY (www.kohlberg.com).

In a statement from Kohlberg & Company, the firm said that the minority investment from Blackstone will help provide long-term capital to support Kohlberg’s investing platforms. “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,” said Sam Frieder, Managing Partner of Kohlberg. “With this investment, Kohlberg is well positioned to build upon its 30-year history with continued growth in the years ahead.”

BAAM has approximately $75 billion in assets under management and operates a special situations platform, a hedge fund seeding business, an open-ended mutual fund platform and a business that purchases stakes in established alternative asset managers. Click HERE for the BAAM website.

“With a strong track record of investing over three decades, Kohlberg has established itself as a clear leader in middle market private equity,” said Scott Soussa, Head of BAAM’s Strategic Capital Group. “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.”

Evercore was the financial advisor to Kohlberg.  Ropes & Gray served as legal counsel to Kohlberg and Simpson Thacher served as legal counsel to Blackstone.

© 2018 Private Equity Professional | March 23, 2018

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