KKR & Co' top energy and infrastructure specialist, Marc Lipschultz, will leave the private equity firm after 21 years and start a credit fund with former Blackstone Group LP executive Doug Ostrover. 

Lipschultz will leave New York-based KKR this month and join Ostrover, who left Blackstone last year. 

They said in a recent interview that their new firm, Owl Rock Capital, will make loans to small and mid-sized companies across industries, as well as invest in their debt.

Ostrover said:

“We want to be small and niche, we have hired about 12 employees for Owl Rock so far. We think we’ve found something we can lead in.”

Lipschultz oversaw some of KKR’s most profitable and biggest losses deals as head of energy and infrastructure investing.

KKR spokeswoman, Kristi Huller, said:

“Lipschultz’s departure isn’t related to any individual transaction. Having started KKR four decades ago with this same desire to build a new business, we understand the appeal to Marc of forming his own organization,”

Henry Kravis and George Roberts, co-founders, wrote in a memo to employees:

“Knowing Marc as well as we do, we have every confidence his new venture will be a great success and we look forward to KKR doing business with Marc’s new firm.”

KKR has announced a series of promotions after the movement:

• Robert Antablin will be head of energy private equity in the Americas,
• David Rockecharlie will be head of energy real assets and chairman of the firm’s energy investment committee.
• Raj Agrawal and Jesus Olmos will become global co-heads of infrastructure,
• Agrawal replacing Lipschultz as chairman of the infrastructure investment committee.