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TA Associates takes stake in fund of hedge funds K228/03/2007. Source: AltAssets. 
 TA Associates, a firm providing management buy-out, leveraged recapitalisation and growth equity capital primarily for business services, consumer, financial services, healthcare and technology businesses, has acquired a minority interest in K2 Advisors, a $5.5bn fund of hedge funds. Terms of the transaction were not disclosed.
K2 serves both institutional and private investors globally and maintains offices in New York, Connecticut, London and Tokyo.
'The fund of hedge funds business is changing and to meet new investor demands K2 must grow and invest in the business,' said David C Saunders, K2 co-founder. 'We believe large institutional investors will increasingly be attracted to cutting-edge firms, like K2, with strong portfolio construction and advisory skills and a commitment to good corporate governance. It is anticipated that more than $1tn will be allocated to hedge funds over the next five years and we expect that TA Associates' investment in K2 will ensure that we stay at the forefront of that movement.'
'We have been looking for an institutional quality fund of hedge funds to invest in for a long time, and K2 Advisors is the type of profitable growth company in which TA seeks to invest,' commented Roger B Kafker, a managing director at TA Associates who will join the company's board of directors. 'They are a recognised pioneer in portfolio transparency and risk analytics, and their investment process and role as trusted advisor to their clients is unique in the fund of hedge funds industry. K2's key investment principals have their roots in the hedge fund industry, which gives them a distinctive perspective on managing risk.'
Founded in 1968, TA Associates has offices in Boston, Menlo Park and London. The firm manages $10bn in capital and has invested in more than 370 companies.
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