Looks like a good time to invest.
The private equity firm Kohlberg Kravis Roberts made its name staking billions of dollars on prominent buyouts. But its latest plans are for a sleepier business: mutual funds.
The firm’s asset management subsidiary is starting two mutual funds aimed at individual investors, departing from the buyout industry’s practice of allowing only institutions and the wealthy to commit capital to deals. The new funds will invest in high-yield bonds and other types of debt, according to documents filed with regulators on Wednesday.
K.K.R. is diversifying its operations at a time when the private equity industry is faced with diminished returns in its core business. Economic uncertainty, combined with a weakened financial sector, has hampered the profits that once flowed from buyout deals. In the first quarter of this year, K.K.R.’s deal-related fees fell, though the firm’s overall profit rose.
- K.K.R. Opens Its Doors to Individual Investors (dealbook.nytimes.com)
- Former Brokers Say JPMorgan Favored Selling Bank’s Own Funds Over Others – NYTimes.com (nadernazemi.com)
- Blackstone Profit Fell 74% in Second Quarter – NYTimes.com (nadernazemi.com)
- Private Equity Giants Save Money Buying in Bulk – NYTimes.com (nadernazemi.com)
- UPDATE 1-KKR catches up on mutual funds (uk.reuters.com)