A group of nine members of Goldman Sachs’ New York proprietary trading desk, led by Bob Howard, is headed for Kohlberg Kravis Roberts.
“This is part of a strategic build out of our asset management platform,” KKR co-founders Henry Kravis and George Roberts said in an emailed 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.”
Goldman Sachs’ spokesman Ed Canaday confirmed that the group had left.
“Over several decades, Principal Strategies has been a successful global investing business with a strong performance record and a culture of disciplined risk management,” Goldman said in an emailed statement. “We wish Bob and his team every success in their home.”
The move comes as Wall Street firms prepare for financial regulation limiting their private equity, hedge fund, and proprietary trading businesses
During a conference call this week to discuss third-quarter results, Goldman's chief financial officer,David Viniar, said the firm's proprietary trading business "is essentially wound down."
Morgan Stanley said Wednesday it agreed to give up control of a hedge-fund unit, FrontPoint Partners, to the fund’s managers. The securities firm will maintain a minority stake in FrontPoint.