Lower middle market private equity manager LongWater Opportunities is diving into credit strategies by welcoming eight executives who previously managed a portfolio of more than $4 billion in assets for Reinsurance Group of America (RGA).
With offices in Fargo, N.D., and Dallas, the $300 million LongWater is adding a new private credit and capital solutions strategy in what it describes as a critical step towards achieving its long-term goal of offering investors a diverse suite of alternative investment solutions across the lower middle market.
The new St. Louis-based group will be known as LongWater Private Credit and Capital Solutions and will continue to be headed by Kevin Prunty, who will serve as its senior managing director. “[Prunty] and the team possess deep expertise, strong industry relationships across the lower middle market, and a long history of success that will materially expand the breadth of investment products, capital solutions, and opportunities we provide to our investors,” said LongWater Co-founder Brooks Burgum in welcoming the group.
In his previous role as head of the Private Debt & Equity team at RGA, Prunty oversaw all facets of the team, including origination, structuring, portfolio management, deal operations and reporting. His background prior to RGA was in the leveraged lending industry, working for institutions including Wachovia, Citigroup and LaSalle Bank/ABN AMRO, as well as on the equity side for Caparo Group, a London-based family office.
The incoming team previously managed a portfolio in a multi-faceted, complementary strategy, including direct credit and equity co-investment commitments as well as primary LP capital commitments to lower middle market buyout firms. The team’s reputation for delivering flexible capital solutions and experience investing across a range of industries provides an important foundation for LongWater’s new platform, according to the firm.
“The firm, like our team, has been a highly valuable financial and strategic partner to the management teams of a diverse portfolio of businesses,” said Prunty in a statement. “We believe that LongWater is an ideal new home for our business, as we share a vision for what an innovative alternative investment manager can bring to the lower middle market.”