KKR In Market For Hedge Fund Stakes

Dec 11 2014 | 8:40am ET

Private equity giant Kohlberg Kravis Roberts & Co. is shopping for hedge funds.

KKR co-founder Henry Kravis told a Goldman Sachs Group's financial services conference on Wednesday that the firm was taking positions in general partnerships, which he said was a better use of the firm's balance sheet money than a stock buy-back.

KKR already has stakes in the hedge fund Nephila Capital and the energy credit firm BlackGold Capital Management. In 2012, it acquired the fund of funds Prisma Capital Partners.

“We have a number of conversations that are going on,” Kravis told the New York conference. “I would imagine that over the next three, six, nine months there are others that we end up taking positions in.”

“Off of our balance sheet and our capital markets, that provides about 50% of our earnings,” said Kravis. “Until about eight years ago, we weren’t really diversified at all. Since that time, we are on a tear in expanding the diversification tremendously.”

This story was first reported by Bloomberg.

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