Goldman Sachs Asset Management’s (GSAM’s) Petershill Partners is reported to have bought 40% of private credit manager Kennedy Lewis.

Global investment banks and investment managers are investing to grow their private credit markets exposure.

Kennedy Lewis is an alternative credit manager founded in 2017 by David K. Chene (formerly CarVal) and Darren L. Richman (formerly Blackstone). It has $14 billion of assets under management – across funds, a business development company (Kennedy Lewis Capital Company) and collateralized loan obligations (Generate Advisors).

Through these vehicles, the firm invests in senior secured loans to mid-market companies in the US and Western Europe. Their strategies are: opportunistic credit, homebuilder finance, core lending and broadly syndicated loans.

Kennedy Lewis is headquartered in New York with offices in Miami and Geneva.

Petershill Partners was set up by Goldman Sachs in 2007 to invest in private equity firms, hedge funds and other alternative asset managers. Petershill is publicly listed and has stakes in over 20 asset managers. It is operated by GSAM and GSAM owns 77% of the firm.

We expect to see more deals like this as higher rates make the markets tougher for private credit managers.