Houlihan Lokey Advises Kennedy Lewis Investment Management

Houlihan Lokey is pleased to announce that Kennedy Lewis Investment Management LLC (KLIM) and certain affiliated entities have sold a non-controlling, minority GP equity interest to Azimut Group (Azimut) through Azimut Alternative Capital Partners (AACP). The transaction was announced and closed on July 29, 2020.

KLIM was founded in 2017 by David Chene and Darren Richman and currently has approximately $2.1 billion in combined assets under management (AUM) and committed capital. KLIM is a leading opportunistic credit manager that pursues event-driven situations in which an idiosyncratic catalyst may unlock investment value. It primarily focuses on middle-market companies facing disruption, whether it be cyclical, secular, or regulatory related. KLIM is able to deploy capital opportunistically across a range of sectors and debt securities in both North America and Europe. KLIM currently employees a growing team of 28 professionals, including 19 investment professionals.

AACP was established in November 2019 with the purpose of partnering with alternative asset managers by providing them with permanent capital to grow and reach their greatest business potential. The deal is the first transaction completed by AACP and represents a significant milestone as well as a demonstration of Azimut’s commitment to pursue its objectives in the United States private markets industry.

Azimut, established in 1989 with headquarters in Milan, Italy, manages in excess of $60 billion in total AUM. The parent company, Azimut Holding, was listed on the Milan Stock Exchange in 2004 (ticker AZM-IM) and is part of the FTSE MIB large-cap index. Azimut operates in three key segments: public markets, private markets, and emerging markets. Throughout the years, it has significantly expanded its geographical footprint, reaching approximately 30% of total AUM from overseas and opening offices in 17 countries around the world, including the Americas (Miami, New York, Sao Paulo, Mexico City, Santiago), EMEA (Milan, Monte Carlo, Lugano, Luxembourg, Dublin, Istanbul, Dubai, Abu Dhabi, Cairo), and Asia-Pacific (Shanghai, Hong Kong, Taipei, Singapore, and Sydney). Through a business model that integrates production and distribution, Azimut’s network now encompasses more than 3,000 professionals, of which approximately 100 are portfolio managers and analysts and approximately 2,200 are proprietary financial advisors primarily serving Azimut’s retail and high-net-worth client base.

The transaction entails AACP acquiring an approximate 20% of KLIM and contributing permanent capital to the business going forward. Approximately 90% of proceeds from the transaction will be used primarily to increase KLIM’s investments in its own funds, confirming the team’s strong commitment to align itself with its investors and drive the long-term growth of the business. There will be no changes in the strategy, management, investment process, or day-to-day operations of KLIM or any KLIM-managed product as a result of AACP’s investment. KLIM is able to create a partnership with a global investment manager with a global retail distribution network, a long-term investment horizon, and demonstrated growth-enhancing capabilities.

Houlihan Lokey served as the exclusive financial advisor to KLIM and assisted in structuring and negotiating the transaction. The transaction highlights Houlihan Lokey’s expanding capability as a leading advisor in general partnership stake transactions.