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.
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s