Black Diamond Capital Management's senior management purchased co-founder and managing partner James J. Zenni Jr.'s interest in the firm, according to Joel Steinhauf, spokesman with Mr. Zenni's outside public relations firm. Terms were not disclosed, according to Black Diamond spokesman Steven Goldberg. Mr. Zenni is leaving the firm with six Black Diamond associates and establishing Z Capital Partners, an independent alternative investment management firm. The new firm will establish a hedge fund to be seeded with capital provided by Mr. Zenni.
Stephen Deckoff and Mr. Zenni were co-owners of Black Diamond, which they founded in 1995. Mr. Deckoff is remaining at Black Diamond, which informed investors of Mr. Zenni's departure in July. Black Diamond has about $9 billion in assets under management.
