Jefferies backs new investment firm Stonyrock

Leucadia Asset Management, a division of Jefferies, is backing Stonyrock Partners LP, a new investment firm. Stonyrock will target minority equity stakes in high-quality, middle-market alternative managers. Craig Schortzmann and Sean Gallary, former managing directors at Blackstone and Carlyle respectively, are leading Stonyrock.

Correction: A earlier version of this news report misstated the exact details of the Stonyrock/LAM partnership. It has since been corrected. 

PRESS RELEASE

NEW YORK–(BUSINESS WIRE)–Stonyrock Partners LP (“Stonyrock”), led by Managing Partner Craig Schortzmann and Partner Sean Gallary, and Leucadia Asset Management (“LAM”), a division of Jefferies Financial Group Inc. (“Jefferies”), today announced a strategic partnership to raise a permanent capital vehicle to invest in middle market alternative managers.

Stonyrock will target minority equity stakes in high-quality, middle-market alternative managers across a range of asset classes, strategies and geographies, creating a highly diversified portfolio of partnerships. Stonyrock’s strategy seeks to address the growing demand from alternative managers to bring in outside capital to execute on a range of strategic priorities including franchise growth initiatives, operational investments and succession planning. Stonyrock will leverage its internal affiliate development platform capabilities as well as its strategic partnerships, including with LAM and Jefferies, to help support affiliate managers’ business ambitions and priorities.

“We are thrilled to be partnering with LAM and Jefferies. With the combination Stonyrock’s internal strategic capabilities and Jefferies’ global platform focused on the middle market, we see tremendous opportunity to work collaboratively with affiliate managers to create truly strategic partnerships,” commented Mr. Schortzmann.

“As we have watched the alternative asset management industry mature, we believe there is an attractive and sustainable opportunity to partner with leading middle market alternative asset managers as they prepare for the next stage of their life-cycle and face the opportunities that lie ahead,” added Mr. Gallary.

In a joint statement, Jefferies’ Rich Handler, CEO, and Brian Friedman, President, said: “We are excited to partner with Craig and Sean in launching Stonyrock to address a growing market opportunity. We are enthusiastic about this opportunity and look forward to working together as Stonyrock executes on its business plan.”

Messrs. Schortzmann and Gallary bring over 30 years of combined experience, having collectively invested in over 20 asset management firms since 2005. Previously, Mr. Schortzmann was a Managing Director and senior member of Blackstone’s Strategic Capital Holdings Fund while Mr. Gallary was a Managing Director and Head of the Partnership Strategy within the Carlyle Group.

About Stonyrock Partners LP

Stonyrock Partners (Stonyrock) is a newly-formed specialized private investment firm that seeks to partner with leading asset management firms via strategic partnerships, and assist them in building long-term franchises. Stonyrock will seek to acquire economic interests in firms that manage strategies across asset classes including, but not limited to, private equity, credit, hedge funds, real estate, venture, and infrastructure.

About Leucadia Asset Management

Leucadia Asset Management (LAM) is engaged in offering institutional clients an innovative range of investment strategies through its affiliated asset managers. LAM is a wholly-owned subsidiary of Jefferies Financial Group Inc. (NYSE: JEF), a diversified financial services company. Jefferies Financial Group Inc. is engaged in investment banking and capital markets, asset management and direct investing. Jefferies Group LLC offers a full range of investment banking, equities, fixed income, asset and wealth management products and services.