King Street Capital Management (KSCM) is a large investment advisory firm that supports a number of investment funds. The currently has more than $24 billion in assets under management (AUM). The firm provides investment advisory services to its Flagship Funds, European Funds, Real Estate Funds, the Rockford Tower CLOs and a few other funds. Collectively, these funds invest in various asset classes that provide global exposure.
KSCM does not advise individuals directly. If you're an investor looking for a financial advisor, SmartAsset’s free tool can help you find advisors in your area.
King Street Capital Management Background
King Street Capital Management first began operations in 1995. The firm’s general partner is King Street Capital Management GP, LLC, which is led by managing member Brian J. Higgins. Higgins and O. Francis Biondi, Jr., who is now retired, are the co-founders and indirect principal owners of the KSMC.
King Street Capital Management Client Types and Minimum Account Sizes
King Street Capital Management currently offers services solely to private investment funds. However, it may provide additional services to other types of clients in the future.
Because KSCM only works with investment funds, it does not have a firm-wide minimum investment requirement. However, some of its funds may have minimum investments.
Services Offered by King Street Capital Management
King Street Capital Management delivers advice to private investment funds. Each has its own characteristics, which we describe below:
- King Street Capital, L.P. - This is a fund focused on global investing that's available primarily to U.S. taxable investors.
- King Street Capital, Ltd. - This fund is also focused on global investing, only it's available primarily to non-U.S. investors and U.S. tax-exempt investors.
- King Street Europe, L.P. - This feeder fund invests most of its assets through master fund King Street Europe Master Fund, Ltd., a British Virgin Islands business company. The fund is designed primarily for U.S. taxable investors.
- King Street Europe, Ltd. - This feeder fund invests most of its assets also through master fund King Street Europe Master Fund, Ltd. However, the fund is meant for non-U.S. investors and U.S. tax-exempt investors.
- King Street Real Estate Fund, L.P. and King Street Real Estate Fund II, L.P. - This fund is available primarily to U.S. taxable investors, with its funds being invested in global real estate and their related assets.
- King Street Real Estate Fund (Offshore PF), L.P. and King Street Real Estate Fund (Offshore PF) II, L.P. - This is a Cayman Islands exempted partnership offered primarily to non-U.S. investors and U.S. tax-exempt investors that also focuses on real estate and their related assets.
- Rockford Tower CLOs - These are collateralized loan obligation vehicles (CLOs) that invest primarily in broadly syndicated loans.
- KS ICC Capital, L.P. - This closed-end fund focuses on investments in a specific geographic area, asset class or another characteristic. It's a Euro-denominated British Virgin Islands limited partnership that's offered to non-U.S. investors.
King Street Capital Management Investment Philosophy
King Street Capital Management services funds that invest in a variety of asset classes. Each fund has its own objective. The Flagship Funds invest globally across different asset classes such as equities and fixed-income and are event-driven. As their name implies, the European Funds invest in a variety of European assets. Similarly, the Real Estate Funds invest in global real estate and real estate-related assets, focusing, the firm says, “on situations that are out-of-favor, complex, misunderstood or in markets undergoing a transition.”
Fees Under King Street Capital Management
Fees for King Street Capital Management’s investment advisory services are typically charged as a percentage of each fund's assets under management (AUM). That percentage varies, depending on the fund.
For the Offshore Funds, clients have a choice between the Tranche I or II or Structure I or II fee schedules. Annual management fees for Tranche I/Structure I investors are 1.50% of net assets and payable in advance on a quarterly basis. The management fees for Tranche II/Structure II investors are 1.00% of net assets of the applicable fund, payable in advance on a quarterly basis.
Additionally, the firm receives performance-based fees of 20% of net profits (including realized and unrealized gains) of the applicable fund for Tranche I/Structure I, and 25% of the net profits (including realized and unrealized gains) of the applicable Fund for Tranche II/Structure II.
The Real Estate Funds generally pay KSCM or an affiliate a 1.50% management fee quarterly in advance. An affiliate of KSCM, says the firm, “will receive a carried interest with respect to the Real Estate Funds generally equal to 20% of all realized profits subject to a preferred return of 8% per annum compounded annually, as more fully described in the governing documents of each Real Estate Fund.”
Rockford Tower Capital Management (RTCM) receives management fees from the Rockford Tower CLOs at about 0.45% of the par value of the collateral and cash held in the Rockford Tower CLOs. Performance-based fees are “typically 20% of the excess cash flows due to the holders of the subordinated notes, subject to a stated hurdle rate,” according to the firm's Form ADV.
Other investment funds not specifically mentioned above will be charged a management fee of between 0% and 1.00%. Performance-based fees will also be charged, with rates ranging from 10% of 20% of realized profits, subject to a preferred return.
What to Watch Out For
King Street Capital Management has no disclosures to report in its most recent filings with the U.S. Securities and Exchange Commission (SEC).
Opening an Account With King Street Capital Management
To contact King Street Capital Management, fill out the contact form on the firm's website. If you'd prefer to speak over the phone, you can reach KSCM at (212) 812-3100.
King Street Capital Management is headquartered at 299 Park Avenue on the 40th Floor in New York City. It also maintains offices in London, Singapore, Tokyo and Charlottesville, Virginia.
All information was accurate as of the writing of this article.
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