Z Capital loses senior executive amid fundraising

Christopher Kipley, a senior executive at Z Capital Partners, left the firm late last year as it worked to raise two funds, sources said.

Kipley worked at Z Capital since the firm’s inception in 2006, when he joined as a principal, according statements from the firm. He was promoted to senior managing director in 2012. He left in December, people said. It’s not clear why he left or if he is joining another firm.

Kipley’s exit comes amid a wave of departures at the firm. Other executives that have departed Z Capital include Peter Coroneos, who ran corporate development and investor relations and left in January, according to his LinkedIn profile.

Other executives in corporate development, including Managing Directors Salim Belkaid, Dave DeMilt and Colin McClary who all worked in business development, are also gone. McClary and DeMilt left last year, according to their LinkedIn profiles. It’s not clear when Belkaid left.

In February, the firm announced numerous promotions. Stephen Parsons, an operating partner, joined the management committee; while Matthew Kane, Neal Nath, Pascale Thomas and Conor O’Grady were made managing directors. Ian Delehanty and Kevin Spriggel were promoted to directors; Yury Sandovich was promoted to operating director and Tyler Hendry was named senior operating associate.

The firm earlier this month hired former J.P. Morgan executive Bonnie Wang as managing director and head of corporate development.

Z Capital has been in market since last year with its third fund, targeting $1 billion. As of July, the firm collected about $286.5 million, according to a Form D fundraising document. It’s not clear how much Fund III has raised to date.

The firm also is in market with its third special-situations fund, documents from New Mexico Educational Retirement Board said. The board approved a $50 million commitment to the fund in April 2017, the documents said. It’s not clear how much the fund has raised or how much it’s targeting.

President and CEO James Zenni formed Z Capital in 2006 after he left Black Diamond Capital Management, which he co-founded in 1995.

Correction: A prior version of this story said Kipley was promoted to senior managing director and partner in 2012. He was only made senior managing director. The report has been updated.

Action Item: Check out Z Capital’s Form D here: https://bit.ly/2HKW3Kj

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