Wednesday, 1 April 2015
Last updated 8 hours ago
Jun 2 2014 | 6:32am ET
Kohlberg Kravis Roberts’ first foray into stock hedge funds has come to an end after less than three years.
The firm has liquidated its KKR Equities Strategies, launched with great fanfare in 2011, a year after the private-equity giant hired a team of Goldman Sachs proprietary traders to lead the effort. KKR blamed a “lack of scale” for the decision; KES managed only $500 million last month, one-third of which came from KKR and firm employees. The fund has fewer than 20 outside investors.
KES posted annualized returns of about 5% during its short life.
KKR continues to run two credit hedge funds. But the firm said it will now focus on buying stakes in established managers rather than running funds in-house.
“As our hedge-funds business has evolved, we have decided to focus on our hedge-fund solutions business, the building of strategic stakes and seeding effort modeled after what we did with Nephila Capital, and scaling our credit-oriented hedge funds,” KKR said.
Robert Howard, Goldman’s former head of U.S. proprietary trading, will remain a senior adviser to KKR. Most other members of the KES team, about a dozen people, will leave the firm.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
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…