Singapore-headquartered K1 Ventures has bought $100 million in preferred stock and warrants of Guggenheim Capital, a privately-held firm with around $100 billion in assets under supervision.

The investment, which was made through K1 subsidiaries, comprises $100 million of Series A preferred units and 11,111,111 Series A preferred warrants to purchase Guggenheim common units at $9 per unit. It is part of an aggregate preferred units capital raising by Guggenheim of up to $500 million.

The capital injection will be used to support “recent growth initiatives” and “further expansion plans both domestically and abroad,” said Chicago-based Guggenheim.

As part of the deal, Steven Jay Green, chairman and chief executive of K1 and a former US ambassador to Singapore, will join Guggenheim’s executive committee. Furthermore, K1 will be granted board observation rights which at its option can be converted to a seat on the board of directors.

"We are confident [Green's] experience and relationships stemming from his tenure as the US ambassador to Singapore, chairman and CEO of K1 Ventures, and many other business roles, will be of great value to Guggenheim," said Todd Boehly, president of the financial services firm.  

Citigroup, Credit Suisse and Verus International acted as financial advisors, and Sidley Austin acted as legal counsel to Guggenheim on the transaction. Willkie Farr & Gallagher acted as legal counsel to K1 Ventures.