TA Associates Adds Hedge Fund of Funds To Portfolio

Mar 28 2007 | 3:45pm ET

If you can’t (or don’t want to) raise it, buy it. This week, private equity firm TA Associates took the path to least resistance, buying a minority stake in K2 Advisors, a $5.5 billion fund of hedge funds. Terms of the transaction were not disclosed. 
 
Approximately $100 million of the proceeds will be invested in existing K2 strategies, as well as incubating new strategies. The firm will also broaden ownership to a greater number of K2 employees. K2 management will remain intact and there will be no changes to the firm’s strategy, operations or personnel.
 
“We have been looking for an institutional quality fund of hedge funds to invest in for a long time, and K2 Advisors is the type of profitable growth company in which TA seeks to invest,” said Roger Kafker, a managing director who will join the company’s board of directors. “K2’s key investment principals have their roots in the hedge fund industry, which gives them a distinctive perspective on managing risk.”
 
For its part, K2 is looking to expand its investor base to include TA Associates’ investors.  “We see a significant number of synergies with TA Associates and its limited partners and look forward to working closely with them,” said William Douglass, a K2 co-founder. “We also see opportunities to selectively expand our franchise and this investment will enable us to actively explore those opportunities.”


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of