Goldman Prop. Traders’ Hedge Fund To Debut In Late 2011

Nov 4 2010 | 8:48am ET

The Goldman Sachs proprietary traders set to join Kohlberg Kravis Roberts in January won’t launch their first hedge fund until later in the year.

Scott Nuttall, who heads the private equity firm’s global capital and asset management group, said on a conference call with analysts yesterday that the firm will “go out and talk to third-party investors about investing in the platform” set up by the nine-member group, led by Robert Howard, head of Goldman Sachs Principal Strategies in the U.S.

But Nuttall warned that most of next year would be spent setting up that platform, and that KKR would only begin to seek outside money “once we’re ready.”

That will likely be “sometime next year, but probably the later part of next year,” Nuttall said. “It will take a while” for the group to get started, “and once they do start we’ll need to set up operations and IT, etc.”

He added that Howard’s group would be fully integrated into KKR’s asset management business and would build a long/short equity strategy to complement the firm’s existing credit team.

“While we may feed the group with capital off the balance sheet, it will be a reasonably modest amount of capital,” he said.


In Depth

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedging Against Reputational Risk in the 21st Century

Feb 12 2016 | 7:18pm ET

For investors, the first step in researching a new fund or manager is to google...