White Mountains Boosts Capital Commitment To Kudu

NEW YORK, Feb. 14, 2019 /PRNewswire/ — Kudu Investment Management, LLC, a leading provider of capital solutions to asset and wealth management firms, today announced that White Mountains Insurance Group, Ltd. (NYSE: WTM), a Bermuda-domiciled financial services holding company, has agreed to raise its commitment to Kudu to $250 million.

White Mountains has agreed to acquire the interests previously held by funds managed by Oaktree Capital Management, L.P. (“Oaktree”) and to assume Oaktree’s uncalled capital commitment.

“White Mountains is pleased with the progress made since our initial investment in Kudu last year. We are eager to augment our commitment to the Kudu team,” said Manning Rountree, CEO of White Mountains.

“White Mountains’ patient capital and ‘unlimited partners’ philosophy perfectly reflects Kudu’s own long-term approach to investments,” said Rob Jakacki, CEO of Kudu. “As such, we are delighted that White Mountains has increased its commitment to Kudu as we continue to provide flexible capital solutions to boutique managers.”

The transaction remains subject to customary closing conditions, including regulatory approval.

Early in 2018, Kudu secured a $250 million commitment from White Mountains and Oaktree. In recent months, Kudu has made several investments in specialist asset and wealth managers. The firm:

Acquired a minority stake in London-based alternative credit manager Fair Oaks Capital Ltd., which manages approximately $2.4 billion and specializes in collateralized loan obligations (CLOs) as well as direct investment in bank loans.
Provided minority permanent capital to TIG Advisors, LLC, an alternative investment management platform overseeing approximately $3 billion in assets.

Facilitated a management buyout for San Francisco-based wealth manager Bingham, Osborn & Scarborough, LLC. Worked with Tunbridge Partners to take a minority stake in Savanna, a fund manager that owns, operates and develops real estate in the New York City area.

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