KKR (KKR) has terminated KKR Equities Strategies - its first stock hedge fund launched less than three years ago. The fund was made up of a dozen former Goldman Sachs (GS) traders, and was started by KKR to diversify its business.
The termination was decided due to "lack of scale" and focus on other hedge fund products.
Since its start in 2011, the fund reported an average annualized return of about 5%.
At of the start of May, KKR Equities Strategies had about $510M under management. A third of the clients were from KKR, and there were less than 20 external investors.