Intending to launch a new long-short public equities unit, KKR has hired nine traders from the Goldman Sachs prop-trading desk GSPS.
The group, led by Bob Howard, who ran the U.S. division of the global equities prop-trading unit, begins at KKR in January.
In a statement, KKR co-founders Henry Kravis and George Roberts, said, "This is part of a strategic build out of our asset management platform." Howard and his team, they added, "will be an ideal fit for that objective."
GSPS's departure from Goldman has been a foregone conclusion since the Dodd-Frank Act, which curtails the ability of banks to trade for their own accounts, was signed into law this past summer. Since then, Howard and his team have held discussions with a variety of buy-side firms, including Pimco, BlackRock, and KKR, about the possibility of coming on board in some capacity.
“Over several decades, Principal Strategies has been a successful global investing business with a strong performance record and a culture of disciplined risk management. We wish Bob and his team every success in their new home,” Ed Canaday, a Goldman Sachs spokesman, said.