Leading Canadian Private Credit Firm Third Eye Capital Receives Significant Backing From Kudu Investment Management

Rhea-AI Summary

Third Eye Capital, a prominent Canadian private credit firm, has partnered with Kudu Investment Management, acquiring a minority stake. Although financial terms were undisclosed, this investment is set to bolster Third Eye's capability to launch new funds within the growing Canadian private credit market. Third Eye, managing approximately C$2.8 billion, aims to support underserved companies. Kudu, now holding investments in 16 partner firms globally, enhances its portfolio with Third Eye, reflecting a shared vision and operational alignment.

Positive

• Kudu's investment aims to strengthen Third Eye's market position and facilitate the launch of new funds.
• Third Eye manages approximately C$2.8 billion, indicating solid financial health.
• The partnership maintains Third Eye's operational independence and majority employee ownership.

Negative

• None.

TORONTO and NEW YORK, Sept. 9, 2021 /PRNewswire/ -- Third Eye Capital (Third Eye), a leading Canadian private credit firm, is partnering with Kudu Investment Management, LLC (Kudu), an independent provider of permanent capital solutions to asset and wealth managers worldwide. Kudu is acquiring a minority stake in Third Eye and its affiliates. Terms were not disclosed.

Through a unique combination of flexible capital and strategic and operational insights, Third Eye empowers growing companies that are underserved and underappreciated by other capital sources. Founded in 2005 by Arif Bhalwani and David Alexander, Third Eye currently manages approximately C$2.8 billion for a diversified client base of primarily Canadian institutional and high net worth investors.

"Kudu's investment allows us to enhance our already significant alignment with clients and help us launch new funds in the evolving Canadian private credit markets," said Bhalwani, Third Eye's CEO. "With our strong track record of helping portfolio companies successfully manage complex change events ranging from extreme distress to hyper growth, Third Eye has become a preferred alternative capital provider for Canadian management teams."

"We chose to partner with Kudu for several reasons, including its permanent capital structure, shared vision, and a cultural alignment that was clear from the moment we met," added Bhalwani. "Kudu's preference for minority positions fully aligns with Third Eye's growth ambitions, without altering our processes, timelines or continued independence and majority employee ownership."

"There is so much to admire in Third Eye," said Rob Jakacki, CEO of Kudu. "Our mission has always been to back extraordinary management teams and provide them the capital and support for their growth. Third Eye has a best-in-class team and a distinctive business model that gives it a unique edge in the expanding alternative credit markets in Canada. We are honored to partner with them."

With the addition of Third Eye as its first investment in Canada, Kudu now has investments in 16 partner firms (including two managed for a third party) domiciled in the U.S., Canada, the U.K. and Australia. Kudu-affiliated asset and wealth managers collectively invest US$91 billion (C$115 billion) on behalf of individual and institutional investors worldwide in traditional and alternative strategies, as of June 30, 2021. Founded in 2015, Kudu has more than US$650 million (C$823 million) in capital commitments to date.

RBC Capital Markets served as financial advisor and Bennett Jones, LLP was legal counsel to Third Eye. Osler, Hoskin & Harcourt, LLP and Seward & Kissel LLP served as legal advisors to Kudu.

About Third Eye Capital
Based in Toronto, Third Eye Capital is a leading Canadian private credit firm providing tailored financing and value-added operational expertise to its portfolio companies. Since 2005, Third Eye Capital has directly invested more than C$3.5 billion in over 100 financings for non-sponsored companies operating across a diverse set of industries, including the sustainability sector, natural resources, technology, financials, healthcare, media, food and hospitality, transports and construction services. For more information, please visit www.thirdeyecapital.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 partner White Mountains Insurance Group, Ltd. (NYSE: WTM). For more information, please visit Kudu's website.

View original content:https://www.prnewswire.com/news-releases/leading-canadian-private-credit-firm-third-eye-capital-receives-significant-backing-from-kudu-investment-management-301372667.html

SOURCE Kudu Investment Management, LLC

FAQ

What is the significance of Kudu's investment in Third Eye Capital?

Kudu's investment provides Third Eye Capital with the resources to enhance its offerings and develop new funds in the Canadian private credit market.

How much capital does Third Eye Capital manage?

Third Eye Capital manages approximately C$2.8 billion for a diverse client base.

What strategic advantages does the partnership offer Third Eye Capital?

The partnership allows Third Eye to maintain its independence while benefiting from Kudu's permanent capital structure.

What is Kudu's role in the investment?

Kudu provides permanent capital solutions and shares a vision aligned with Third Eye's growth ambitions.

How many partner firms does Kudu have?

Kudu has investments in 16 partner firms across various countries, including Canada.