This page has been archived and commenting is disabled.
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.
»
- 3610 reads
- Printer-friendly version
- Send to friend
- advertisements -
KKR gets ownwership and control of a market dominating, lucrative business and some entity of Goldman (surprise) becomes a major stakeholder and limited partner of the PE fund which now owns it's former desk.
Ta-da. Win-win and Regulation narrowly averted.
That was a close one.
Although, if Goldman does not become a major PE investor here that's a bad sign for KKR...
THE PROP TRADER
http://williambanzai7.blogspot.com/2010/09/prop-trader.html
...and in other news, we have basically wiped out all of yesterdays reality. You are now free to ride your unicorn in the nude, while snorting pixi dust off its butt.
Based on the current volume, we could up 5% today for absolutely no fucking reason whatsoever. The robot-ponzi parade is in full swing today.
With the blantent pump (no trader I know finds any positive news coming out today), makes me wonder how many redemptions came in last night and so far today.
Maybe "someone" knows that the Beige book (due out in just over an hour) is really going to look like shit and as such, the S&P is going to require the usual round of pumping to cushion the fall.
Come on man, the odds of this are about as real as the RSH LBO
Ah pirate equity D'ahr
The money is a burnin' in their pockets.
Is unlimited free Discount Window access included in the deal?
Why are all these firms selling their prop desks? SOmething they know that we don't?
Will Goldman at least do a reach around or is this a dry pump of KKR?
Hi CD
If that. Like, not even.
I read that too fast...I almost thought the KKK was buying out Goldman's prop.
BIDDING WAR!!!!!!!!!!!
April fools? Won't happen, everyone knows their prop desk stands for a lot more than the 10% of the revenue they claim... Move on...
goldman's proprietary algo's have to be worth a small fortune
It ain't the algos; it's the access, son.
Give me access to the marching orders of The Fed's desk and I care not what algo you have, I will whip your ass in any horse race.
bloomberg says it's Perella Weinberg looking to acquire the GS team - which does not make that much either as PW is more a PE like shop
why is this a good news for GS? Prop trading brings a lot revenues for GS. If GS selling that, it must not be a great business any longer, especially many eyes are watching. WTF is this really mean? fetal position?
Apparently Perella Weinberg now mentioned too. Trying to start a bidding war, bless 'em. I wonder if GS will make their 'results' public for the purpose of auction.
strange, really. what is one buying here. like Soylent Green, GS Principal Strategies is just people. There is no client capital other than Goldman's, so the capital is just worth book.
the only thing that makes sense to me is if they are selling their HFT software with it.
It gets better, now Blackrock are mentioned as a possible bidder. We are talking about a group of people managing a few billion of GS money. Why on earth would anyone want to hire this group en masse ? Don't forget, there have been other examples of former big bank prop teams setting up their own hedge funds ... and failing dismally, the classic example being SRM spun out of UBS in recent years.
A while back (3 yrs or so) I was told that private equity firms would become the "new" investment banks of the future. The old sell side model was being ripped down for the new and improved buy side structure. This seems to me like more evidence of this becoming reality.
As Darth Vader would say:
"Now the Circle is Complete"
http://www.youtube.com/watch?v=gCNeJmLAsBo
How good are they out of the flow with the Algo switched off?
Is this the trade where Buffett gets shafted?
Nice article thanks.
cheap site hosting | windows web hosting | windows vps hosting
with gucci replica handbags with other passengers. Options run the gamut louis vuitton handbags cheap gamut from upscale (Carnival's steakhouses) and quirky replica rolex watch quirky (Celebrity's Qsine), to exotic (Holland America's cheap burberry bags America's Tamarind), theatrical (NCL's Cirque Dreams and porsche watch and Dinner) and casual (Royal Caribbean's Johnny ?????????? Johnny Rockets).Eat off-peak: Even with flexible dining, a full dolce gabbana watch full dining room can mean the only omega seamaster only choice you're offered is whether to gucci necklaces for men to share a table for eight or oris watch or ten. Plan to arrive for dinner louis vuitton wallets dinner once the rush is over or rado watch or before it's begun to maximize your ?? ?????? your chances of snagging a quieter table ???? ?? table for two.Eat ashore: For a ulysse nardin watch a truly authentic meal in a foreign tag monaco watch foreign clime, port days await. Lunch ashore movado replica ashore is always