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Blackstone takes minority stake in Kohlberg & Co.

Blackstone Group's Strategic Capital Holdings Fund is taking a minority, passive stake in Kohlberg & Co., the 32-year-old private equity firm formed by the senior founding partner of KKR & Co, said Paula Chirhart, Blackstone spokeswoman, in an email.

The fund is part of Blackstone Alternative Asset Management and acquires interests in alternative investment managers.

The size of the stake and the terms of the transaction are not being disclosed.

Kohlberg & Co. will be using the investment to help grow the firm, according to a news release.

"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, Kohlberg's managing partner, in the release. "With this investment, Kohlberg is well-positioned to build upon its 30-year history with continued growth in the years ahead."

Brooke Flohr, Kohlberg & Co spokeswoman, declined comment beyond the news release.

Kohlberg has raised $4 billion in assets under management. The firm is now investing the $2.2 billion Kohlberg Investors VIII, which closed in December 2016.