KKR to Pay $30 Million to End SEC Probe Into Misallocated Fees

KKR & Co. agreed to pay almost $30 million to settle allegations that it allowed some investors, including the firm’s own executives, to escape expenses linked to unsuccessful corporate buyouts.

The accord includes a $10 million fine and disgorgement of about $18.5 million, the U.S. Securities and Exchange Commission said in a statement Monday. An SEC investigation found that over a six-year period that ended in 2011, KKR incurred $338 million of “broken deal” expenses that it didn’t impose on co-investors, the SEC said.