KKR, Hedge Fund Team Up With Canadian Pension For I-Bank Biz.

Jan 18 2013 | 12:52pm ET

Kohlberg Kravis Roberts and Stone Point Capital have added a new backer to their new middle-market investment-banking business.

The $170 billion Canada Pension Plan Investment Board is now a partner at MerchCap Solutions, which offers both debt and equity underwriting to middle-market and private-equity-backed companies. CPPIB, a longtime KKR investor, is putting up $30 million in capital—KKR and Stone Point each chipped in $150 million—and has agreed to buy up to $2 billion in deals produced by MerchCap.

The pension giant was drawn to MerchCap's focus on "underserved" companies, it said.

"We're trying to take what we do for large-cap clients in the form of private equity, or what big banks do for big companies, and saying to the middle market, you've got these options, too," Craig Farr, head of capital markets at KKR, said. KKR's capital markets business is leading MerchCap initially.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR