Interval Fund Manager Variant Investments Adds Kudu Investment Management as Strategic Capital Partner

Rhea-AI Summary

Variant Investments has announced a minority investment from Kudu Investment Management as of January 19, 2023. The financial details of the investment were not disclosed. Variant, which is employee-controlled and manages over $2.3 billion in assets, seeks investments in niche private markets through its funds, including the Variant Alternative Income Fund and the Variant Impact Fund. Kudu aims to enhance Variant's growth by offering extensive networking opportunities. Kudu has backed 23 asset managers globally and collectively manages approximately $66 billion for diverse investors.

Positive

• Kudu's investment provides Variant with a strategic partner for growth.
• Variant manages over $2.3 billion, indicating strong asset management capabilities.
• Kudu's extensive network may increase capital diversification for Variant.

Negative

• None.

NEW YORK and PORTLAND, Ore., Jan. 19, 2023 /PRNewswire/ -- Variant Investments, LLC (Variant), an SEC-registered alternative credit specialist and interval fund manager, and Kudu Investment Management, LLC (Kudu), a provider of permanent capital solutions to independent asset and wealth managers worldwide, today announced that Kudu has made a minority investment in Variant. Financial terms were not disclosed.

Portland, Ore.-based Variant remains employee-controlled and is led by Bob Elsasser, Curt Fintel, and J.B. Hayes, co-founders and principals. Variant manages more than $2.3 billion, largely for registered investment advisor (RIA) clients. The firm seeks to invest in uncorrelated income-generating assets in niche private markets and offers its strategies to investors through institutional closed-end interval funds.

The Variant Alternative Income Fund (NICHX), with more than $2.3 billion in assets, was launched in October 2017 and invests in specialty finance, litigation finance, royalties, and other income-generating opportunities outside the investment mainstream. The Variant Impact Fund (IMPCX), with approximately $23 million in assets, was introduced in November 2021 and seeks to provide a high level of current income. The Variant Impact Fund also aims to target investment opportunities that support financial inclusion, equitable growth, and responsible consumption, in line with the United Nations Sustainable Development Goals. 

"In Kudu, we have a partner with a keen understanding of founder-led firms that provide investors with differentiated strategies," Hayes said. "We are excited to leverage Kudu's extensive network as we diversify our capital base."

"Variant's talented leaders have, in a relatively short time, built a powerful platform that serves the RIA channel with alternative credit investments," said Rob Jakacki, Kudu CEO. "We look forward to supporting Variant's continued growth."

Since it was founded in 2015, New York-based Kudu has invested in 23 asset and wealth managers headquartered in the U.S., Canada, U.K., and Australia. Kudu-affiliated asset and wealth managers now collectively invest approximately $66 billion, as of Nov. 30, 2022, on behalf of individual and institutional investors worldwide in traditional and alternative strategies and market segments. Kudu's capital partners are White Mountains Insurance Group, Ltd. and Massachusetts Mutual Life Insurance Company (MassMutual). 

Buchalter PC was legal counsel to Variant. Seward & Kissel LLP served as legal advisor to Kudu.

About Variant Investments

Established in 2017, Variant Investments is an employee-controlled SEC-registered alternative credit manager. Variant's strategies are focused on uncorrelated income-generating private investments in niche markets and offered to investors through institutional closed-end interval funds. For more information, visit www.variantinvestments.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 independent 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, visit www.kuduinvestment.com.

Media Contacts
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+1 617-312-4281
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An investment in the Fund is speculative, involves substantial risks. The Variant Alternative Income Fund and Variant Impact Fund are continuously-offered, non-diversified, registered closed-end fund with limited liquidity operating as interval funds. There is no guarantee the Funds will achieve their objectives.  An investment in the Funds should only be made by investors who understand the risks involved, who are able to withstand the loss of the entire amount invested and who can bear the risks associated with the limited liquidity of Shares. A prospective investor must meet the definition of "accredited investor" under Regulation D under the Securities Act of 1933.  

Shares are an illiquid investment. You should generally not expect to be able to sell your Shares (other than through the repurchase process), regardless of how the Funds perform. Although the Funds are required to implement a Share repurchase program only a limited number of Shares will be eligible for repurchase by the Funds. 

BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS, A COPY OF WHICH MAY BE OBTAINED FROM (877) 770-7717 OR WWW.VARIANTINVESTMENTS.COM. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.  

The Variant Funds are distributed by Foreside Fund Services, LLC. Foreside Fund Services, LLC is not affiliated with other entities discussed herein.

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SOURCE Kudu Investment Management

FAQ

What is the recent investment news regarding WTM?

Kudu Investment Management made a minority investment in Variant Investments, enhancing its strategic partnership.

What is the significance of Kudu's investment for WTM?

The investment bolsters Variant's capital base and supports its growth strategy in alternative credit markets.

How much does Variant Investments manage?

Variant Investments manages over $2.3 billion in assets.

What funds are associated with Variant Investments?

Variant manages the Variant Alternative Income Fund and the Variant Impact Fund.

What is Kudu's role in the investment made in WTM?

Kudu aims to leverage its network to support Variant's continued growth and diversification.