New York-basedinvestment firm Kohlberg Kravis Roberts & Co (KKR) is reportedly liquidating its first equity hedge fund, KKR Equities Strategies, which was launched in 2011.
The termination of the hedge fund within three years after poaching former Goldman Sachs Group Bob Howard to manage the fund vehicle marks a setback to the KKR’s efforts to diversify its operations.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The move is also seen how much pressure the alternative asset managers amid changing regulatory scenario as well as strict capital regulations.
KKR shut down its equity strategies fund last week as the firm concentrates on other ways to establish a hedge fund arm.
It is believed that the company under its renewed strategy is planning to acquire equity stakes in established hedge funds instead of operating its own hedge funds.
Attributing the latest move to a lack of scale and a focus on other hedge fund products, a KKR spokeswoman told Reuters that the New York-based firm had decided to close its KKR Equity Strategies fund and return its capital to investors, confirming an earlier report in the Wall Street Journal.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataKKR had US$102.3 billion in assets under management as of the end of 31 March 2014, US$60.5 billion of which was in private funds, including private equity and real estate, and about US$30 billion in credit assets.
