Former KKR private credit exec joins Magnetar Capital

Magnetar's decision to tap Falk, well-known in the private credit world, is especially notable as the firm does not have a dedicated private credit arm. 

Former KKR global head of private credit Erik Falk has joined fixed-income investment firm Magnetar Capital to work on “strategic initiatives” after leaving his old investment firm in April.

Magnetar said Falk started work Tuesday at the firm’s Evanston, Illinois headquarters. In February, Private Debt Investor exclusively reported his departure as well as KKR’s addition of Matthieu Boulanger, formerly of HPS Investments, as a private credit portfolio manager.

Magnetar declined to provide further comment.

Falk, who could not be reached for comment, will be working with firm’s management committees, which includes chief executive officer Alec Litowitz and global head of fixed income David Snyderman on the strategic initiatives. In an email to colleagues on his last day at KKR last spring, Falk said he was “leaving to pursue a new opportunity”.

Falk had joined KKR in 2008 and sat on the investment committees for private credit and leveraged credit, as well as the portfolio management committee for KKR Credit. Before KKR, Falk was a managing director at Deutsche Bank Securities.

“We are constantly evolving to meet the changing needs of investors,” Litowitz said in a statement. Falk’s experience will aid the firm as it “continue[s] to pursue new and innovative market opportunities across a broad range of sectors”, he added.

Apart from being a major name in the private credit world, Falk's addition to the team is especially notable as Magnetar does not have a dedicated private debt arm.

The company’s four verticals currently include fixed income, which invests in multiple asset classes including corporate credit and structured products; debt and equity in North American energy; quantitative, which combines quantitative and hedge fund investing; and fundamental strategies, which includes event-driven and risk arbitrage investments in both debt and equity.

Other financial firms with substantial credit investing platforms have established or expanded their private credit practices, mostly recently PineBridge Investments adding three former executives of Business Development Corporation of America, which was acquired by Benefit Street Partners in a transaction that closed last November.