Market Overview

Stone Point and KKR to Form KKR - SPC Merchant Advisors; Committing $300M In Total

Stone Point Capital ("Stone Point"), through its Trident V private equity fund, and KKR & Co. L.P. (NYSE: KKR) today announced the formation of a partnership to establish a new company, KKR - SPC Merchant Advisors LLC (“Merchant Advisors”). The newly formed company will provide principal and agency-based capital markets services to mid-market and sponsor-backed companies as well as make certain principal investments to support client needs. This new business will be distinct and separate from KKR's existing capital markets business (“KKR Capital Markets” and, together with its affiliates, “KKR”), which primarily serves KKR's private equity portfolio companies.

Trident V and KKR will each commit $150 million of equity, or $300 million in total, to Merchant Advisors to support its capital markets activities and client base. Merchant Advisors will be overseen by a board of directors consisting of equal representation from KKR and Stone Point. The day-to-day origination, execution and underwriting activities of the company will initially be managed by KKR Capital Markets executives. Over time, Merchant Advisors may expand its business to include other services that are valued by its clients, including risk management and fundraising services.

Posted-In: News Hedge Funds General

 

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