Tuesday, 26 May 2015
Last updated 3 days ago
May 22 2014 | 11:02am ET
Kohlberg Kravis Roberts wasn’t entirely honest with investors about a consulting business, the private-equity giant said.
In its 2011 annual report, the firm listed KKR Capstone as a subsidiary. In addition, Capstone is described as an “affiliate” in regulatory filings, and Capstone’s chief has been called a KKR partner. Those statements were not “technically correct,” the firm now says.
Capstone is not owned by KKR but by its own management team; it licenses the KKR names. KKR said the proper term for Capstone is “variable interest entity.”
The semantics matter because KKR shares 80% of “consulting fees” earned by KKR “affiliates.” Most of KKR’s consulting fees come from Capstone. But because the firm doesn’t own the consultancy, it does not fall under the fee-sharing “affiliate” provision.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…