Michael Zugay was named head of investments in BlackRock's U.S. private capital group to lead its private investments in midsized U.S. companies.
Mr. Zugay will join the firm on Monday and also serve as vice chairman of the unit's investment committee, according to a memo provided by the company. He will also be in charge of investments for BlackRock Capital Investment Corp., a business development company that lends to middle-market firms.
Money managers including BlackRock, Carlyle Group, KKR & Co. and TPG are seeking to fill a lending void left by banks that face higher regulatory costs for making loans to small- and midsized companies. Managers are placing more emphasis on private capital and credit as investors demand yield amid record low interest rates.
Mr. Zugay has served as a managing director in Ares Management's direct lending group, where he was responsible for making private debt and equity investments for the firm's publicly traded business development company, according to the memo. He managed each stage of the investment process and monitored the portfolio companies.
Mr. Zugay will report to Steven Sterling, head of U.S. private capital at BlackRock.