Emerging Markets Specialist Gramercy Funds Management Adds Kudu Investment Management as Strategic Investor

Rhea-AI Summary

Kudu Investment Management has acquired a minority interest in Gramercy Funds Management, facilitating the reinvestment of proceeds into Gramercy's investment strategies. This partnership is aimed at strengthening Gramercy’s alignment with limited partners and enhancing their portfolio amid current market volatility. Gramercy manages approximately $5.4 billion in assets across various emerging market strategies. Kudu has previously invested in 18 asset managers and has raised over $800 million in equity and debt capital, positioning both firms for growth opportunities.

Positive

• Kudu's acquisition enables Gramercy to reinvest in its investment strategies, enhancing alignment with limited partners.
• Gramercy manages approximately $5.4 billion, positioning it well for future growth.
• The partnership aligns with Gramercy's strategy to capitalize on current market volatility and expand investment opportunities.

Negative

• None.

GREENWICH, Conn. and NEW YORK, June 9, 2022 /PRNewswire/ -- Gramercy Funds Management, LLC (Gramercy), a dedicated emerging markets investment firm, and Kudu Investment Management, LLC (Kudu), an independent provider of permanent capital solutions to asset and wealth managers, today announced that Kudu has acquired a minority interest in Gramercy. The majority of the proceeds will be reinvested into Gramercy's investment strategies, further aligning the firm with its limited partners. The terms of the transaction were not disclosed.

Gramercy manages approximately $5.4 billion for a global client base in emerging market strategies including multi-asset, private credit, public credit, and special situations. Founded in 1998 and based in Greenwich, Conn., Gramercy is led by Robert Koenigsberger, Founder, Managing Partner and Chief Investment Officer and Scott Seaman, Senior Partner and Chief Operating Officer. Its management committee has been chaired by Mohamed El-Erian since 2020. The firm has offices in London, Buenos Aires and Mexico City, and dedicated lending platforms in Brazil, Colombia, Mexico, Peru, Turkey, and pan-Africa.

"Kudu has an established track record as a supportive and steadfast permanent capital partner," Koenigsberger said. "This transaction will allow us to infuse additional capital into our investment strategies as well as bolster our balance sheet at an opportune time for the firm and our investors. In doing so, we strengthen our bond with limited partners as more of our capital will be working alongside theirs as we pursue a broader range of attractive investment opportunities."  

"Gramercy's investment strategies are uniquely positioned in the current era of heightened volatility and geopolitical tension, both contributing to continued growth and expanding opportunities," El-Erian said. "Kudu's important and timely partnership will enhance what already is a leading emerging markets investment platform."

Since 2018, New York-based Kudu has acquired minority stakes in 18 asset and wealth managers headquartered in the U.S., Canada, U.K., and Australia. Kudu-affiliated asset and wealth managers now collectively invest more than $70 billion on behalf of individual and institutional investors worldwide in traditional and alternative strategies and market segments. To date, Kudu has raised more than $800 million in equity and debt capital from White Mountains Insurance Group, Ltd. and Massachusetts Mutual Life Insurance Company (MassMutual). 

"Kudu continues to seek out specialized, high-quality active asset and wealth managers worldwide, and we're thrilled to add the market-leading Gramercy team to our portfolio of partner firms," said Kudu CEO Rob Jakacki.

Piper Sandler & Co. served as financial advisor and Dechert LLP was legal counsel to Gramercy. Seward & Kissel LLP served as legal advisor to Kudu.

About Gramercy Funds Management

Gramercy is a dedicated emerging markets investment manager based in Greenwich, Conn., with offices in London, Buenos Aires and Mexico City. Founded in 1998, Gramercy serves a global institutional client base and seeks to provide investors with superior risk-adjusted returns through a comprehensive approach to emerging markets supported by a transparent and robust institutional platform. Gramercy offers both alternative and long-only strategies across emerging markets asset classes including multi-asset, private credit, public credit, and special situations. Gramercy is an SEC-registered firm and a Signatory of the Principles for Responsible Investment (PRI). Gramercy Ltd, an affiliate, is registered with the Financial Conduct Authority in London. For more information, please visit www.gramercy.com 

About Kudu Investment Management

Kudu provides long-term capital solutions—including generational ownership transfers, management buyouts, acquisition and growth finance, as well as liquidity for legacy partners—to asset and wealth managers globally. Kudu was founded in 2015 and is backed by capital partners White Mountains Insurance Group, Ltd. (NYSE: WTM) and MassMutual. For more information, please visit www.kuduinvestment.com

Media Contacts

For Gramercy:
Steve Bruce/Taylor Ingraham/Keely Gispan
ASC Advisors
+1 203-992-1230
sbruce@ascadvisors.com
tingraham@ascadvisors.com
kgispan@ascadvisors.com  

For Kudu:
Richard Chimberg/Margaret Kirch Cohen
Newton Park PR
+1 617-312-4281/+1 847-507-2229
rich@newtonparkpr.com
margaret@newtonparkpr.com

View original content:https://www.prnewswire.com/news-releases/emerging-markets-specialist-gramercy-funds-management-adds-kudu-investment-management-as-strategic-investor-301565181.html

SOURCE Kudu Investment Management, LLC

FAQ

What is Kudu Investment Management's recent acquisition related to WTM?

Kudu recently acquired a minority interest in Gramercy Funds Management, enhancing its investment portfolio.

How much capital does Gramercy manage?

Gramercy manages approximately $5.4 billion in emerging market strategies.

What are the investment strategies of Gramercy?

Gramercy focuses on multi-asset, private credit, public credit, and special situations in emerging markets.

What financial backing supports Kudu Investment Management?

Kudu is backed by capital partners White Mountains Insurance Group and Massachusetts Mutual Life Insurance Company.

What impact does Kudu's investment have on Gramercy's operations?

Kudu's investment allows Gramercy to reinvest in its strategies and strengthen its balance sheet.