KKR in talks to hire Goldman prop trading group

[Sanket Patel]

Link to article (Bloomberg)

KKR & Co. and Perella Weinberg Partners LP are in talks to hire Goldman Sachs Group Inc.’s U.S. proprietary trading group, according to a person familiar with the matter.

Kristi Huller, a spokeswoman for KKR, Ed Canady, a Goldman Sachs spokesman, and Kara Findlay, a spokeswoman for Perella Weinberg, declined to comment. The Goldman group is led by Bob Howard in New York.

Goldman is disbanding its principal-strategies business, one of the groups that makes bets with the firm’s own money, to comply with new U.S. rules aimed at curbing risk, two people with knowledge of the decision said last week.

Wall Street’s most profitable investment bank plans to hold off on announcing the wind-down while the 65 to 70 members of the global unit seek new jobs, the people said, speaking anonymously because the internal discussions about the process are confidential. Some traders and support staff may get roles within the New York-based firm, while a team in Asia may raise money for a new hedge fund, the people said.

 

[Andy Nguyen]

Looks like the move will go ahead as reported

From Bloomberg:
Bob Howard, who heads the Goldman Sachs group in the U.S., will join as managing director and report to William Sonneborn, who heads KKR's asset-management division, Kristi Huller, spokeswoman for the New York-based firm, said today in a telephone interview. The hedge fund, which will be able to bet on rising and falling stock prices, is scheduled to start raising money next year.
"This is part of a strategic build-out of our asset- management platform," Kravis and Roberts said in an e-mailed statement. "Our goal has been to add new capabilities and exceptional talent that allow us to strengthen our product offering and better service our clients. Bob and his team will be an ideal fit for that objective as we've been impressed with their investment experience and performance as well as their ability to manage risk."