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King Street Capital Management Review

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King Street Capital Management

King Street Capital Management (KSCM) is an investment advisory firm that supports pooled investment vehicles. It does not advise individuals. If you are an investor looking for a financial advisor, SmartAsset’s five-minute matching tool can help you find suitable advisors in your area.  

King Street Capital Management Background

KSCM first began operations in 1995. The firm’s general partner is King Street Capital Management GP, L.L.C. Today, it currently has more than $26 billion in assets under management (AUM). 

The firm offers investment advisory services to its Flagship Funds and European Funds, Real Estate Funds and the Rockford Tower CLOs. Collectively, these funds invest in various asset classes that provide global exposure. 

What Types of Clients Does King Street Capital Management Accept?

KSMC currently offers services solely to private investment funds. However, it may provide additional services to other client types in the future. 

King Street Capital Management Minimum Account Size

Because the firm doesn’t serve individual clients, an account minimum is not applicable. 

Services Offered by King Street Capital Management

KSCM delivers advice to private investment funds. Each has its own characteristics which we describe below: 

  • King Street Capital - available primarily to U.S. taxable investors
  • King Street Capital, Ltd. - available primarily to non-U.S. investors and U.S. tax-exempt investors.
  • King Street Europe, L.P and King Street Europe, Ltd. - feeder fund that invests most assets through master fund King Street Europe Master Fund, Ltd., a British Virgin Islands business company. 
  • King Street Real Estate Fund, L.P - available primarily to U.S. taxable investors 
  • King Street Real Estate Fund (Offshore PF), L.P., - a Cayman Islands exempted partnership offered primarily to non-U.S. investors and U.S. tax-exempt investors
  • Rockford Tower CLOs: collateralized loan obligation vehicles that invest primarily in broadly syndicated loans

King Street Capital Management Investment Philosophy

KSCM 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 KSCM’s investment advisory services are typically charged as a percentage of 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 schedule. Annual Management fees for Tranche I/Structure I investors are 1.5% of net assets and payable in advance on a quarterly basis. The management fees for Tranche II/Structure II investors are 1.0% 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 1.5% 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. 

What to Watch Out For

KSCM does not offer financial planning or serve individual investors with small asset sizes. If you are looking for a financial advisor to customize your portfolio or help you with your personal finances, this firm is probably not the right fit.

Disclosures

KSCM had no disclosures to report in its most recent filings with the Securities and Exchange Commission (SEC). For the latest information, you can access its Form ADV on the SEC website

Opening an Account With King Street Capital Management

To contact KSCM, send an email via its website at https://www.kingstreet.com/ContactUs.aspx?Id=Non. 

Where Is King Street Capital Management Located?

KSCM is headquartered at 299 Park Avenue, 40th Floor, New York, New York 10171. 

It also maintains offices in London, Singapore, Tokyo and Charlottesville, Virginia. 

Tips for Finding the Right Financial Advisor

  • There are plenty of financial advisors who work with individual clients. To find one near you, use SmartAsset’s pro matching tool. It links you with up to three advisors in your area. 
  • Don’t assume all financial advisors will provide advice in your best interests. Some are only required to provide “suitable” recommendations. So ask prospective advisors if they are fiduciaries. If they aren’t, you may want to keep on looking. 

All information was accurate as of the writing of this article.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research