Blackstone Group Buys Quant Credit Shop DCI
Posted on 11/30/2020
The Blackstone Group agreed to buy DCI, an independent asset management firm specializing in investment grade, high yield, and emerging market corporate credit strategies. San Francisco-based DCI has around US$ 7.5 billion in assets under management and is a quantitative credit investing firm. Post-deal, DCI will become part of Blackstone Credit.
Blackstone Credit is one of the world’s largest credit-focused asset managers, with US$ 135 billion in AUM.
DCI was co-founded in 2004 by Stephen Kealhofer, Mac McQuown, and David Solo. The cofounders’ achievements include the creation of the world’s first equity index fund at Wells Fargo in 1971, co-founding Dimensional Fund Advisors in 1981, and co-founding KMV in 1989. While at KMV between 1989 and 2002, a group of DCI’s founders and principals developed the world’s first credit default probability model. Moody’s eventually bought KMV.