Kohlberg Kravis Roberts hired former Securities and Exchange Commission (SEC) lawyer, Bruce Karpati, as global chief compliance officer, confirmed a source close to the matter. KKR declined to comment.
Karpati’s most recent role was chief compliance officer at mutual fund Prudential Financial; a position he took last May after stepping down as chief of the SEC enforcement division's asset management unit. The unit focuses on the private equity industry, among other asset classes. He is expected to join KKR later this month, according to the source.
Karpati became co-head of the asset management unit, along with Robert Kaplan, in 2010 when the team was first formed. He was “instrumental” in establishing the team, according to the SEC, and a hallmark of his tenure was close coordination with other SEC divisions. Kaplan left the SEC in 2012 to join Debevoise & Plimpton.
During his time at the SEC, Karpati oversaw around 60 cases, mostly involving hedge funds but also including enforcement action brought against Oppenheimer & Company, which was accused of inflating the value of one of its private equity funds while marketing a follow-on fund. Oppenheimer eventually settled with the SEC, paying $3 million as part of the arrangement.