SOURCE: KGS-Alpha Capital Markets

February 10, 2011 09:30 ET

KGS-Alpha Capital Markets, L.P. Completes $150 Million Equity Capital Raise

NEW YORK, NY--(Marketwire - February 10, 2011) -   KGS-Alpha Capital Markets, L.P., a New York-based fixed income broker-dealer that serves its institutional customer base with mortgage-backed, asset-backed and agency debt securities, announced today that it has completed an additional equity financing of approximately $75 million, bringing total equity capital raised in the past six months to over $150 million. This equity investment was led by an affiliate of Healthcare of Ontario Pension Plan (HOOPP), one of Canada's largest and most successful pension plans, with over $30 billion in net assets.

KGS-Alpha started operations in August 2010 with equity investments that were led by Arsenal Capital Partners, a leading New York-based private equity firm that invests in middle market financial services, specialty industrial and healthcare companies.

KGS-Alpha Co-Founder and Board Member Reza Satchu, who led this fundraising effort for KGS-Alpha, said, "We are extremely pleased to announce our partnership with HOOPP. Through the sponsorship of Arsenal and HOOPP, KGS-Alpha is very well positioned to build a leading fixed income broker-dealer. Almost all of our existing investors, including Arsenal, took this opportunity to add substantially to their initial KGS-Alpha investment, which says a lot about what we have accomplished in such a short period of time."

"With the additional capital," noted President Dan Goldman, "and a growing team of over 50 professionals and offices in New York, Boca Raton, Chicago, and Reston, we are building a first class trading and distribution platform to serve the needs of institutional fixed income clients."

KGS-Alpha CEO Levent Kahraman added: "KGS-Alpha is well positioned to provide outstanding market-making and structuring capabilities. The new investment will allow us to aggressively expand our franchise by adding new products and increasing our balance sheet. It also significantly strengthens our credit standing as a counterparty with our customers and trading partners."

Andy Moysiuk, HOOPP Capital Partners Managing Partner said, "HOOPP has found the collaboration with KGS-Alpha's founders and investors to be very productive, and we are excited about joining our new partners as they continue to build a high impact fixed income firm."

About KGS-Alpha Capital Markets

Co-founders CEO Levent Kahraman and President Dan Goldman bring a wealth of industry experience to KGS-Alpha Capital Markets, L.P. Levent Kahraman started his trading career and spent eight years with Salomon Brothers prior to joining Barclays Capital for five years to build the industry-leading structured agency MBS business. Dan Goldman was with Salomon Brothers/Citigroup for 25 years as head of North American fixed income sales and co-head of US rates. For more information about KGS-Alpha, visit www.kgsalpha.com.

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