April 24 Private equity firm KKR & Co LP
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
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. (r.reuters.com/raq78v)
The report added that other private equity firms are also in
talks to sign up for the Nasdaq market and could join before it
The new market would be open only to accredited investors,
or individuals with $1 million in wealth, not including their
primary homes, the Journal report said.
Kristi Huller, a KKR spokeswoman, and Nasdaq spokesman
Joseph Christinat declined to comment on the report.
(Reporting by Aman Shah in Bangalore; Editing by Lisa Shumaker)