Jefferies’ Leucadia Asset Management has formed a strategic partnership with Stonyrock, a firm founded by former Blackstone and Carlyle executives, to raise permanent capital to invest in middle-market alternative managers.

Led by managing partner Craig Schortzmann and partner Sean Gallary, Stonyrock will take minority equity stakes across a range of diversified strategies, asset classes and geographies. The firm’s focus includes but is not limited to private equity, credit, real estate, venture and infrastructure.

Schortzmann and Gallary bring over 30 years of combined experience, having collectively invested in over 20 asset management firms since 2005.

Previously, Schortzmann was a managing director and senior member of Blackstone’s Strategic Capital Holdings Fund, while Gallary was a managing director and head of the partnership strategy within the Carlyle Group.

Officials declined to provide specific details on the amount of capital raised so far and how much may wind up in hedge fund vehicles.

Stonyrock’s strategy is to address the growing demand from alternative managers to bring in outside capital to execute on a range of strategic priorities such as franchise growth initiatives, operational investments and succession planning.

Leveraging its internal affiliate development platform and its strategic partnerships, including with Leucadia and Jefferies, Stonyrock plans to boost managers’ business ambitions and priorities.

“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,” said Gallary.

In a joint statement, Jefferies’ CEO Rich Handler 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.”

Ex-Blackstone, Carlyle directors launch seeding firm with Leucadia on HFM InvestHedge.