FoF K2 Advisors Considering Sale

Jun 23 2011 | 7:23am ET

K2 Advisors, the $10 billion fund of hedge funds, may be looking for a buyer.

The Wall Street Journal reports the Stamford, Conn.-based shop is in discussions with possible buyers, including the Carlyle Group. Citing people “familiar with the matter,” the paper said K2 is considering an outright sale or the sale of a majority stake.

K2 co-founder David C. Saunders refused to comment on the issue, telling the WSJ, “Right now we're just interested in managing money. We think we're in a really great position. Anything else would be a distraction.”

K2 has added about $3 billion in AUM since 2008, despite choppy markets.

Saunders founded K2 in 1994 with William A. Douglass III, calling it after the Himalayan mountain of the same name. The firm has offices in London, Sydney and Tokyo, as well as the U.S. and over 90% of its AUM come from institutional investors, according to marketing documents viewed by the paper.

T.A. Associates, a Boston-based private-equity firm, bought a minority stake in K2 in 2007. The value of the transaction was never revealed.


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