The latest news about Goldman’s biggest proprietary trading unit, Principal Strategies, which is in the process of spinning out from the firm, is that the unit is in talks with private equity firms which apparently might want to acquire some or all of the traders.
From CNBC’s Kate Kelly:
Around 12 of the 50 traders are in talks with KKR or another PE firm, who might want to acquire some of the traders.
The only word on which traders might be bought by an outside firm is that the deal would exclude the European and Asian arms of business.
The reason Goldman is probably looking for buyers is probably that the firm will try to make as much money on the spin-off as possible.
The word is that it’s not Goldman looking for buyers, it’s the individual traders, led by Bob Howard.
Gary Townsend, an analyst with Hill-Townsend Capital, said on Friday that he it worried him that he hadn’t seen Goldman making moves to profit off the firm’s dissolving of the prop trading part of their business.
So selling a piece of the business to a big firm like KKR, who could pay a lot, could be a good move.
Apparently that is still a concern.
We’ll keep you posted on more news as we get it.