Black Diamond Capital Question

Black Diamond Capital is a Greenwich based Asset Management firm with ~$8bn AUM. I think they are mostly known for their CLO and credit HF business, but they also have a middle market PE group that most recently raised a $1.5bn Fund IV in late 2015. It would be great if anyone could share any information they have on the PE group like its reputation, returns, or culture. From reading articles online, it sounds like a lot of the PE group's deal flow is buying turnarounds through restructuring or reorganization processes (maybe having the credit HF business is an advantage in this regard), although I think the PE group may also compete in normal middle market auctions that you would see your typical middle market PE firm bid in.

Below is a description of the firm from their website:

Black Diamond Capital Management, L.L.C (Black Diamond) is a leading alternative asset management firm with approximately $8 billion in assets under management. With complementary control distressed/private equity, hedge fund and CLO and other structured vehicles, Black Diamond focuses on investing in debt securities that offer structural protection and have substantial underlying assets. Black Diamond's control distressed/private equity funds focus more specifically on middle market companies with market leadership positions within their sectors. Black Diamond employs a disciplined investment process that synthesizes bottom-up credit analysis with an in-depth knowledge of the credit system. Founded in 1995, Black Diamond employs over 30 investment professionals and has offices in Greenwich, CT, Lake Forest, IL, London, England and USVI.

Below is a link to the press release announcing the PE group's most recent fundraise:

GREENWICH, Conn., Oct. 7, 2015 /PRNewswire/ -- Black Diamond Capital Management, LLC ("Black Diamond" or "BDCM"), a leading credit focused alternative asset management firm, is pleased to announce the successful fundraising of BDCM Opportunity Fund IV, L.P. ("Fund IV"), substantially exceeding its original target and holding a final close at its hard cap of $1,500,000,000.

Fund IV will continue BDCM's focus on acquiring middle-market U.S. and European based companies, typically through a restructuring or reorganization process, across multiple industries.

"We are very pleased to have exceeded our expectations during this fundraise and are especially thankful to our current investors for their significant support," stated Steve Deckoff, founder and Managing Principal of Black Diamond. "We are also very appreciative of the trust and confidence a significant group of new investors, representing some of the largest pension plans, insurance companies and sovereign wealth funds investing in private equity today, has placed in our firm and strategy."

Comments (2)

May 8, 2019


May 13, 2019