KKR buys into money-minting energy hedge fund

Henry Kravis, co-founder of KKR
Daniel Acker | Bloomberg | Getty Images

BlackGold Capital Management has been virtually printing money, and KKR wants in.

The private equity giant announced Monday that it was acquiring a 24.9 percent interest in the $1.4 billion Houston, Texas-based hedge fund firm. The terms weren't disclosed, but the reason for the interest in BlackGoldwhich primarily invests in the debt of energy-sector companies—is obvious.

The BlackGold Opportunity Fund has produced annualized returns of 30.81 percent from January 2009 through May 2014, according to confidential performance information. By comparison, the Absolute Return Credit Index, which measures hedge funds that practice a similar strategy, gained 11.75 percent over the same period.