TOKYO (Reuters) – Deryck Maughan, a partner of Kohlberg Kravis Roberts & Co, said the private equity firm would not buy toxic assets as part of a U.S. government program to help banks clean up bad debts.
“We will not be participating in the program. It’s not what we do,” Maughan told Reuters in an interview on Wednesday.
“We don’t have the right people. I think we are in a different business to PIMCO or BlackRock.”
Maughan is a director of Thomson Reuters.
The Obama administration last month offered a raft of incentives for private investors to help banks get rid of up to $1 trillion in toxic assets that have strangled global credit markets and pushed the world economy into its worst slump since the 1930s.
BlackRock Inc, the largest U.S. publicly traded asset manager, has said it would take part in the U.S. Treasury’s plan to cleanse banks of toxic assets in an investment management role.
PIMCO, the world’s largest bond fund, has also said it would participate in the program, both buying toxic assets and managing some of them.
(Reporting by Junko Fujita and Nobuhiro Kubo; Editing by Chris Gallagher)