Variant Investments, LLC (Variant), an SEC-registered alternative credit specialist and interval fund manager, and Kudu Investment Management, LLC (Kudu), a provider of permanent capital solutions to independent asset and wealth managers worldwide, today announced that Kudu has made a minority investment in Variant. Financial terms were not disclosed.
Portland, Ore.-based Variant remains employee-controlled and is led by Bob Elsasser, Curt Fintel, and J.B. Hayes, co-founders and principals. Variant manages more than $2.3 billion, largely for registered investment advisor (RIA) clients. The firm seeks to invest in uncorrelated income-generating assets in niche private markets and offers its strategies to investors through institutional closed-end interval funds.
The Variant Alternative Income Fund (NICHX), with more than $2.3 billion in assets, was launched in October 2017 and invests in specialty finance, litigation finance, royalties, and other income-generating opportunities outside the investment mainstream. The Variant Impact Fund (IMPCX), with approximately $23 million in assets, was introduced in November 2021 and seeks to provide a high level of current income. The Variant Impact Fund also aims to target investment opportunities that support financial inclusion, equitable growth, and responsible consumption, in line with the United Nations Sustainable Development Goals.
“In Kudu, we have a partner with a keen understanding of founder-led firms that provide investors with differentiated strategies,” Hayes said. “We are excited to leverage Kudu’s extensive network as we diversify our capital base.”
“Variant’s talented leaders have, in a relatively short time, built a powerful platform that serves the RIA channel with alternative credit investments,” said Rob Jakacki, Kudu CEO. “We look forward to supporting Variant’s continued growth.”
Since it was founded in 2015, New York-based Kudu has invested in 23 asset and wealth managers headquartered in the U.S., Canada, U.K., and Australia. Kudu-affiliated asset and wealth managers now collectively invest approximately $66 billion, as of Nov. 30, 2022, on behalf of individual and institutional investors worldwide in traditional and alternative strategies and market segments. Kudu’s capital partners are White Mountains Insurance Group, Ltd. and Massachusetts Mutual Life Insurance Company (MassMutual).
Buchalter PC was legal counsel to Variant. Seward & Kissel LLP served as legal advisor to Kudu.
Established in 2017, Variant Investments is an employee-controlled SEC-registered alternative credit manager. Variant’s strategies are focused on uncorrelated income-generating private investments in niche markets and offered to investors through institutional closed-end interval funds. For more information, visit www.variantinvestments.com.
Kudu provides long-term capital solutions—including generational ownership transfers, management buyouts, acquisition and growth finance, as well as liquidity for legacy partners—to independent asset and wealth managers globally. Kudu was founded in 2015 and is backed by capital partners White Mountains Insurance Group, Ltd. (NYSE: WTM) and MassMutual. For more information, visit www.kuduinvestment.com.