Key Takeaways
- • Stable Asset Management led a $150 million investment in London-based Kinnerton Hill Capital, taking an ownership stake in the structured private credit firm founded in 2024 by Jacob Usar, former head of credit opportunities at Park Square Capital.
- • Kinnerton provides mid-market European companies with flexible capital solutions including preferred equity, senior debt, junior debt, and mezzanine financing—addressing a critical gap as traditional private equity financing has become constrained by higher interest rates and compressed valuations.
- • Private equity portfolios held 32,000 unsold companies valued at $3.8 trillion as of end-2025, with 2026 exits remaining muted due to geopolitical concerns and valuation skepticism, driving demand for alternative credit structures that bypass traditional exit timelines.
- • Stable has multiple millions in dry powder and is close to closing another transaction with a U.S.-based manager, signaling institutional appetite for non-traditional credit vehicles as a hedge against challenging deal environments.
- • The shift reflects a fundamental market transition: traditional private equity optimization for low-cost debt, multiple expansion, and quick exits is no longer viable, requiring portfolio companies to adopt structured debt solutions that provide flexibility and extended runway.
Summary
Stable Asset Management, a New York-based backer of hedge funds and alternative asset managers, is deepening its commitment to private credit markets through a $150 million ownership investment in Kinnerton Hill Capital, a London-based structured credit platform. The transaction represents a strategic bet on the durability of mid-market European financing demand in an environment characterized by persistent headwinds—elevated interest rates, compressed valuations, and limited traditional exit opportunities.
Kinnerton Hill Capital was founded in 2024 by Jacob Usar, who previously served as head of credit opportunities at Park Square Capital. The firm specializes in providing capital to mid-sized European companies through a flexible toolkit that includes preferred equity, senior debt, junior debt, and mezzanine financing. This diversified approach addresses a critical gap in the middle market, where traditional private equity financing has become less accessible due to the cost of debt and lender caution.
The macroeconomic backdrop supporting this transaction is substantial. According to Bain & Company research cited in the announcement, private equity portfolios held 32,000 unsold companies representing $3.8 trillion in aggregate value as of the end of 2025. Exit activity in 2026 has remained subdued, constrained by geopolitical concerns, including the Iran war, and persistent uncertainty about software valuations amid artificial intelligence disruption. Additionally, buyer skepticism regarding valuation expectations for older or more challenged portfolio assets has created a structural mismatch between seller pricing and buyer willingness to pay.
Tom Berntsen, representing Stable, articulated the strategic rationale plainly: "Traditional private equity was optimized for a world of cheap debt, rising multiples and shorter holding periods. Cheap money's gone, multiple expansion is gone and easy exits are gone." Kinnerton's structured credit approach provides portfolio companies extended financial runway without forcing distressed exits, effectively addressing this new reality. Stable indicated it maintains millions in dry powder for additional similar transactions and is close to closing another deal with a U.S.-based manager, underscoring institutional conviction that non-traditional credit structures represent a durable and growing market segment.
Kinnerton Hill Capital was founded in 2024 by Jacob Usar, who previously served as head of credit opportunities at Park Square Capital. The firm specializes in providing capital to mid-sized European companies through a flexible toolkit that includes preferred equity, senior debt, junior debt, and mezzanine financing. This diversified approach addresses a critical gap in the middle market, where traditional private equity financing has become less accessible due to the cost of debt and lender caution.
The macroeconomic backdrop supporting this transaction is substantial. According to Bain & Company research cited in the announcement, private equity portfolios held 32,000 unsold companies representing $3.8 trillion in aggregate value as of the end of 2025. Exit activity in 2026 has remained subdued, constrained by geopolitical concerns, including the Iran war, and persistent uncertainty about software valuations amid artificial intelligence disruption. Additionally, buyer skepticism regarding valuation expectations for older or more challenged portfolio assets has created a structural mismatch between seller pricing and buyer willingness to pay.
Tom Berntsen, representing Stable, articulated the strategic rationale plainly: "Traditional private equity was optimized for a world of cheap debt, rising multiples and shorter holding periods. Cheap money's gone, multiple expansion is gone and easy exits are gone." Kinnerton's structured credit approach provides portfolio companies extended financial runway without forcing distressed exits, effectively addressing this new reality. Stable indicated it maintains millions in dry powder for additional similar transactions and is close to closing another deal with a U.S.-based manager, underscoring institutional conviction that non-traditional credit structures represent a durable and growing market segment.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.