Kohlberg buys Scott's Cove asset manager

NEW YORK (Reuters) - Kohlberg Capital Corp. (KCAP.O), a business development firm, on Wednesday said its asset manager Katonah Debt Advisors LLC bought Scott's Cove Capital Management, an investment manager focused on credit strategies.

The move gives Katonah, which manages some $2.1 billion, "greater expertise in high yield bonds, distressed debt and equities which will strongly complement our leveraged loan capabilities," said Kohlberg.

Terms of the acquisition weren't disclosed.

Phillip Schaeffer will remain portfolio manager of Scott's Cove, which currently has about $60 million in assets under management.

(Reporting by Dane Hamilton. Editing by Derek Caney)