Goldman Seeking To Sell Prop Desk, KKR Rumored As Suitor
According to CNBC, Goldman is now seeking to sell its prop trading desk. And somehow private equity firm KKR is rumored to be involved. Let's say that again: a private equity firm (that typically has a 3-5 year investment horizon and a capital lock up even longer) is alleged to be looking at a principal trading desk (i.e. a hedge fund that has a 3-5 second investment horizon). So either KKR is becoming a hedge fund, or the firm's principals have decided to shorten their lock up to the industry average +/-3 days. Nonetheless, as this news was most certainly better than expected, the KKR follow-on offering should now have no problems to be completed without a glitch.