BlackRock BDC starts 2017 with new CEO

Michael Zugay, former head of US investments at BlackRock, became chief executive officer on New Year’s Day.

BlackRock Capital Investment Corporation (BCIC) has started the new year with a new chief executive at the helm, the business development company said.

Michael Zugay, formerly the head of investments for the US Private Capital Group at BlackRock, replaced Steven Sterling as chief executive officer on 1 January. Sterling will remain a director at BCIC.

“I look forward to continuing to work with our talented investment team as we build on the strong foundation that Steve has established during his tenure,” Zugay said in the 22 December statement.

Zugay also became chairman of the investment committee for the firm’s US Private Capital Group, where he previously led the underwriting and monitoring of private investments, including those for BCIC.

“Michael is a talented investor with extensive experience in the middle market private investing space,” said James Keenan, global head of fundamental credit at BlackRock.

In addition to these duties, Keenan also started a new role at the firm as the new board chairman on 1 January, according to the announcement.

BlackRock was not immediately available to comment further.

Before joining BlackRock, Zugay was a managing director for Ares Management’s direct lending group, where he sourced, evaluated, structured and executed private debt and equity investments.

Prior to Ares, he worked at Zolfo Cooper, conducting corporate restructurings. Zugay launched his career at Donaldson, Lufkin and Jenrette later joined UBS in its Los Angeles office.

New-York based BlackRock Capital Investment Corporation lends to mid-market companies. The firm’s investment portfolio totaled $946.6 million with a 10.1 percent dividend yield for the 12 months ending 30 September, according to a November 2016 investor presentation.