Saturday, 20 December 2014
Last updated 13 hours 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
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.