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

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.