KKR moves into asset management

In a move to expand its offerings, the mega-buyout firm has hired TCW Group president William Sonneborn to develop traditional asset management lines such as public equity funds.

Kohlberg Kravis Roberts has hired TCW Group president William Sonneborn to help develop the mega-buyout firm’s traditional asset management business, PEO has confirmed.

Sonneborn will work with KKR’s existing team in order to develop business lines which are complimentary to the firm’s core private equity business.

The former money management head will help launch funds investing in publicly-traded stocks and will work with KKR’s $20 billion (€12.6 billion) credit unit KKR Fixed Income, as first reported by the Wall Street Journal.

KKR Fixed Income was formed in June when majority-owned subsidiary KKR Financial and the external management company for both KKR Financial Holdings and the KKR Strategic Capital Funds became wholly-owned by KKR. The group was rebranded KKR Fixed Income.

KKR is also expanding its strategy with infrastructure investments and has recruited George Bilicic, a former Lazard managing director, to lead the charge. KKR will invest from existing funds for the time being but reportedly plans to raise a $5 billion fund.

At TCW, Sonneborn oversaw US equities, US fixed income, alternative and international strategies offerings.