K.K.R. Opens Its Doors to Individual Investors – NYTimes.com

K.K.R. Opens Its Doors to Individual Investors – NYTimes.com.

Nader Nazemi-Kohlberg Kravis Roberts

Kohlberg Kravis Roberts

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.

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