Kudu Investment Management LLC, a provider of capital solutions to the asset and wealth management industries, has made a minority investment in real assets investment manager Versus Capital Advisors LLC and affiliated entities. Terms of the deal were not disclosed.
Versus is one of the fastest growing managers using interval fund structures, a type of continuously offered closed-end fund with set redemption periods, according to a January 2019 report on Interval Fund Tracker.
Versus Capital manages approximately $4 billion for investors in two primary strategies: the Versus Capital Multi-Manager Real Estate Income Fund (VCMIX) and the Versus Capital Real Assets Fund (VCRRX), the latter of which focuses on global infrastructure, timberland and agriculture. The funds are utilized by independent registered investment advisors, private banks, and regional consulting firms.
“In order to further institutionalize our business, ensure the long-term independence of the firm, and invest more significantly in our strategies, we sought out a permanent capital partner with a perpetual structure,” said Mark Quam, CEO of Versus Capital. “After an extensive process, we found a great fit with Kudu, given its experience and specialization with asset managers and RIAs.”
Kudu will provide strategic advice as Versus Capital builds out its offerings and further expands its investor network into the RIA channel. Versus Capital management will continue to operate the business, and the Kudu investment will enable the firm’s principals to further reinvest in their own strategies. Versus Capital represents Kudu’s fifth investment since securing $250 million in new capital commitments from investors in February 2018.
Kudu Investment Management provides capital solutions – including generational ownership transfers, management buyouts, acquisition and growth finance, as well as liquidity for legacy partners – to asset and wealth managers. The firm was launched in 2015 and is backed by investors including White Mountains Insurance Group Ltd. (NYSE: WTM).