Goldman Sachs's Proprietary Traders Will Join KKR
About nine members of Goldman Sachs Group (GS) proprietary trading team are joining private-equity firm Kohlberg Kravis & Roberts after entertaining offers from investment firms such as Perella Weinberg and Blackrock, Reuters reported, citing people familiar with the process it didn't identify.
With Goldman shutting down its proprietary trading operations, its executives, led by Bob Howard, will help KKR expand beyond leveraged buyouts into areas such as hedge funds, the wire service reported.
KKR co-founders Henry Kravis and George Roberts confirmed the hire in an emailed statement to Reuters, noting that "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."
Goldman is shutting down its proprietary trading desk in response to the part of the huge financial reform law passed this year called the "Volcker Rule," which puts limits on how much of their own money investments banks can put into hedge funds and private equity.