Zenni’s New Firm Features Old Friends

Black Diamond Capital Management co-founder James Zenni hasn’t wasted any time getting his new alternatives firm up and running.

Zenni, who left Black Diamond last month and sold his ownership stake, has formed Z Capital Partners in Lake Forest, Ill., with a cohort of former Black Diamond employees. The new firm’s first project is a credit hedge fund—seeded with Zenni’s capital—investing in senior-secured junk debt. Zenni said a distressed-debt private equity fund is also in the offing.