Private equity giant KKR & Co. has named Todd Builione its first global head of private wealth, as the firm seeks to work more closely with — and raise more capital from — financial advisors.
In the new position, Builione has been asked to grow the firm’s private wealth distribution platform. He will oversee regional private wealth leads Dan Parant and Doug Krupa in the U.S.; Markus Egloff in the Asia-Pacific region; and Mark Tucker who is in charge of Europe, Middle East and Africa. Builione will report to Eric Mogelof, the global head of KKR’s Client & Partner Group.
“We believe the addition of a senior leader with a global focus will be additive to the success of our global private wealth effort, a critical component of our growth strategy and a big opportunity for the firm,” Joe Bae and Scott Nuttall, co-chief executive officers of KKR, said in a statement.
Investments in KKR funds by private wealth managers have become an integral part of the private equity firm’s business. Private Wealth accounts for 10 percent to 20 percent of new capital raised each year, and KKR expects that contribution will grow to between 30 percent to 50 percent in the next several years. The $459 billion asset manager currently manages about $50 billion in private wealth assets through relationships with private banks, the so-called wirehouses, independent broker-dealers, and RIAs.
The growing amount of capital from private wealth managers will be driven by investments KKR is making across sales and marketing, distribution, technology, product creation and education, the company said.
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Private equity and other alternative asset classes have historically been less accessible than others to many financial advisors and their clients. But platforms like CAIS, used by more than 4,400 advisory firms, and iCapital Network, used by more than 7,000 financial advisors, are lowering investment minimums and easing the administrative burden to invest in alternatives. Asset managers have been eager to get their funds on those platforms and others, as well as invest in them. KKR has invested in iCapital and Apollo Global Management led a $225 million round of funding for CAIS earlier this month that valued the platform at $1 billion.
Last year, KKR also partnered with iCapital to help the platform manage a $430 million private equity fund that came with an acquisition.
The private equity firm has also eyed opportunities in wealth management businesses. In August 2021, KKR invested in Beacon Pointe Advisors, one of the largest independent RIAs, that managed more than $20 billion in assets at the time.
“The combination of a low yield environment, new technology and innovative investment structures is creating an inflection point in the industry and we see individual investors poised to significantly increase their allocations to alternatives in the coming years,” Mogelof said in a statement. “Todd’s extensive knowledge of KKR’s investment strategies and embodiment of our culture make him the ideal partner to lead our global private wealth effort.”
Builione joined KKR in 2013 and was recently the president of KKR Credit and Markets. Chris Sheldon, head of leverage credit, and Adam Smith, head of capital markets, will co-lead the Credit & Markets business. Previously, the business was co-managed by Builione, Smith and Sheldon.
Holly Deaton (@HollyLDeaton) is a staff writer at RIA Intel and based in New York City.
Correction: A previous version of this story reported that KKR was an investor in CAIS. The private equity firm is not an investor in the alternative investments platform.