Thursday, Jun 4, 2015Thursday, Jun 4, 2015

KKR, Nasdaq plan market for trading stakes in buyout funds: WSJ

Published on Apr 25, 2014 10:35 AM

(Reuters) - Private equity firm KKR & Co plans to allow investors to sell parts of their stake in buyout funds through a new private market run by Nasdaq OMX Group Inc , the Wall Street Journal reported on Thursday, citing people familiar with the matter.

In what could be a first in the United States, smaller investors will be able to pick up pieces of these exclusive vehicles for as little as tens of thousands of dollars, the Journal report said.

Private equity firms usually buy companies by raising debt from major hedge funds and wealthy individuals. The new structure will allow existing investors to exit their investments earlier than usual and help the firms reach a wider investor base.

KKR is likely to file for regulatory approval allowing trading of fractional stakes of its funds as soon as this month, according to one of the sources quoted in the report.

Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!