Azimut Alternative Capital Partners acquired a 20% stake providing private credit manager Kennedy Lewis Investment Management with permanent capital in a deal that closed Wednesday.
Kennedy Lewis will invest about 90% of the proceeds of the stake sale in its own funds "confirming the team's strong commitment to align itself with its investors and drive the long-term growth of the business," said a news release from Azimut Group, the Milan-based parent company of Azimut Alternative Capital Partners.
Financial terms of the deal are not being disclosed, Azimut Group spokeswoman Maria Laura Sisti said in an email.
Kennedy Lewis, which seeks event-driven, private credit opportunities primarily in middle-market companies facing disruption, currently has $2.1 billion of invested and committed capital. The firm was founded in 2017.
AACP said in the release that "there will be no changes in the strategy management, investment process or day-to-day operations of Kennedy Lewis" resulting from its minority-ownership of the firm.
AACP was launched in November by Azimut Group to provide permanent capital to U.S.-based alternative investment managers through the acquisition of minority stakes. The investment in Kennedy Lewis is AACP's first, the release said.
"We are very excited to welcome Azimut as a strategic partner. This is an important development in the evolution of Kennedy Lewis as we continue to grow our firm," Kennedy Lewis founders and co-portfolio managers David K. Chene and Darren L. Richman said jointly in the release. "Azimut's investment validates our deliberate and long-term strategy to build an opportunistic credit platform."
Neither Mr. Chene nor Mr. Richman immediately responded to a request for comment.
"We at Azimut Alternative Capital Partners are delighted and honored to welcome Kennedy Lewis as our first partner and affiliates. With the strength of Azimut's global resources, we will fulfill our shared vision of helping Kennedy Lewis achieve its greatest potential," AACP CEO Jeffry Brown said.
Azimut Group managed €42.9 billion ($50 billion) as of June 30. Assets managed by AACP were not available.