The firm was founded in by Jerome Kohlberg, Jr. Robertsall of whom had previously worked together at Bear Stearnswhere they completed some of the earliest Comppany buyout transactions. Since its founding, KKR has completed a number of transactions, including the leveraged buyout of RJR Nabiscowhich Quinwood Coal Company the largest buyout in history to that point, as well as the buyout of TXUwhich is currently the largest buyout completed to date.
KKR has offices in 21 cities in 16 countries across five continents. RobertsJoe Bae, and Scott Nuttall. In a interview with Bloomberg, founder Henry Kravis described KKR in terms of three broad buckets: private markets, public markets, and capital markets.
KKR's business operates in four segments: private markets, public markets, capital markets, and principal activities. Through its private markets segment, the firm manages and sponsors a group of private equity funds that invest capital for long-term appreciation, Com;any through controlling ownership of a company or strategic minority positions.
In addition to traditional private equity funds, KKR sponsors investment funds that invest in growth Compwny and core equity. The firm also manages and sponsors investment funds that invest capital in real assets, such as infrastructure, energy and real estate. Its private equity investment strategy typically seeks to engage primarily in management buyouts, build-ups, or other investments with a view to acquire a controlling or significant influence.
The firm has sourced several smaller growth equity investments and expanded the business by launching dedicated growth equity funds. KKR's first dedicated growth equity fund, launched ininvests in the technology, media and telecommunications sector, primarily in the Key West Lighting Company States, Canada, Europe and Israel. InKKR also launched its second dedicated growth equity fund to pursue investments in the health care sector, also primarily in the United States.
Inthey further expanded on their private equity business by making Kkg first core equity investment, targeting investments that have a longer holding period and a X Company Canada risk Kkr Us Company. KKR's energy business aims to deliver current returns to fund investors through distributions generated by producing and selling oil and natural gas reserves and capital appreciation, and targets real asset investments across the upstream and midstream segments of the oil and gas industry.
KKR's infrastructure platform seeks to achieve returns including current income through the acquisition and operational improvement of Compnay important to the functioning of the economy. The platform has made investments in parking, alternative energy, district heating and contracted electricity generation, water and wastewater, locomotive transportation, midstream and telecommunications infrastructure.
The firm's equity investments include direct investments in real property, debt, special situations transactions Cimpany businesses with significant real estate holdings. Frankford Gas Company real estate credit platform provides capital services for complex real estate transactions with a focus on commercial Quester Company securities, whole loans and subordinated debt.
KKR's credit business invests capital in leveraged credit strategies, including leveraged loans, high-yield bonds, opportunistic credit and revolving credit strategies, and alternative credit strategies, including special situations and private credit strategies such as direct lending and private opportunistic credit or mezzanine investment strategies.
KKR's hedge fund business consists of strategic manager partnerships with third-party hedge fund managers in which KKR owns a minority stake.
KKR's capital markets business mainly arranges debt and equity transactions for the firm, its portfolio companies, and third parties. The Principal Activities segment Kk KKR's balance sheet assets to support its investment management and capital markets businesses.
While running the corporate finance department for Bear Stearns in the s and s, Jerome Kohlbergand later Henry Kravis and George Robertscompleted a series of what they described as "bootstrap" investments beginning in — They targeted family-owned businesses, many of which had been founded in the years following World War II which by the s and s were facing succession issues.
Many of these companies lacked a viable or attractive exit for their founders as they were too small to be taken public and the founders were reluctant to sell out to competitors and so a sale to a financial buyer could prove attractive. Their acquisition of Orkin Exterminating Company in is among the Kkr Us Company significant leveraged buyout transactions. The new KKR completed its first buyout, that of manufacturer A. Industries, in Oregon State remains an active investor in KKR funds.
KKR closed out the s completing the public-to-private buyout of Houdaille Industries in InF. Ultimately the Forstmann consortium came apart and did not provide a final bid for RJR.
In NovemberRJR set guidelines for a final bid submission at the end of the month. Additionally, many in RJR's board of directors had grown concerned at recent disclosures of Ross Johnson's unprecedented golden parachute deal. Has the buyout craze gone too far? In andCoompany number of leveraged buyout transactions were completed which surpassed the RJR Nabisco leveraged buyout in terms of nominal purchase price. However, adjusted for inflation, none of the Uz buyouts of the —07 period would surpass RJR Nabisco.
KKR began to focus primarily on its existing portfolio companies acquired during the buyout boom of the late s. KKR had originally identified a Kjr of divisions that it could sell to reduce debt. RJR issued additional stock to the public in March to further reduce debt, resulting in an upgrade of the credit rating of RJR's debt from junk to investment grade. After sixteen years of efforts, including contributing new equity, taking RJR public, asset Compaby and exchanging shares of RJR for the ownership of Borden, Inc.
In the early s, the absence of an active high yield market prompted KKR to change its tactics, avoiding large leveraged buyouts in favor of industry consolidations through what were described as leveraged buildups or rollups.
One of KKR's largest investments in the s was the leveraged buildup of Primedia in Milwaukee Guitar Company with former executives of Macmillan Publishingwhich KKR had failed to acquire in KKR's largest investment of the s would be one of its least successful.
Shortly after agreeing to the Regal takeover, the deal with United Artists fell apart, destroying the strategy to eliminate costs by building a larger combined company. At the start of the 21st century, the landscape of large Clmpany buyout firms was changing. Additionally, KKR was one of the few firms that was able to complete large leveraged buyout transactions in the years immediately following the collapse of the Internet bubble, including Shoppers Drug Mart and Bell Canada Yellow Pages.
This represented the largest leveraged buyout completed since the takeover of RJR Nabisco in SunGard was the largest buyout of a technology company until the Blackstone -led buyout of Freescale Semiconductor. The SunGard transaction was notable given the number of firms involved in the transaction, the largest club deal completed to that point.
The involvement of seven firms in the consortium was criticized by investors in private equity who considered cross-holdings among firms to be generally unattractive. Clmpany Corporation of America. KKR had previously listed its KPE vehicle inbut for the first time, KKR would offer investors an ownership interest in the management company itself. The onset of the credit crunch and the shutdown of the IPO market dampened the prospects of obtaining a valuation attractive to KKR.
The flotation was repeatedly postponed and called off by the end of August. The following year, in JulyKKR announced a new plan to list its shares.
Shares Klr KPE had declined significantly in the second half of with the onset of the credit crunch. KKR has announced that it expects to close the transaction in With Goldman shutting down its proprietary trading operations, its executives, led by Bob Howard, will help KKR expand beyond leveraged buyouts into areas such as hedge funds.
The international renewable energy generation business operates renewable assets, largely wind farmsacross 14 countries including the United StatesItaly and South Africa. The purchase sum is unknown. On October 12,KKR announced that it has entered into definitive agreement with Allianz Capital Partners to acquire their majority stake in Selecta Group, a European vending services Compxny.
Enforcement of an injunction to build through the Wet'suwet'en territory has sparked widespread protests across Canada. After a leave of absence due to an illness inKohlberg returned to find increasing differences in strategy with his partners Kravis and Roberts. The issue of succession has remained an important consideration for KKR's future as an ongoing institutionalized firm.
From Wikipedia, the free encyclopedia. American investment manager. For the cricket team, see Kolkata Knight Riders. For other uses, see KKR disambiguation. Net income. New York City. United States of America. Main article: RJR Nabisco.
Selected Kohlberg Kravis Roberts — Investments. NXP Semiconductors. Dollar General. Alliance Boots. Sun Microsystems. Baker, George; Smith, George New York: Cambridge University Press. Anders, George New York: BasicBooks. Bartlett, Sarah New York: Warner Books. Burrough, Bryan Barbarians at the Gate. Archived from the original PDF on Retrieved July 27, Archived from the original on Business Wire. Bloomberg Markets. United States Securities and Exchange Commission. September 8, Company History.
Funding Universe; retrieved February 16, A Pursuit of Wealth.
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KKR & Co. Inc. operates as an investment firm. The Company manages investments such as private equity, energy, infrastructure, real estate, credit strategies, and hedge funds. KKR & Co serves...Employees: 1.4K…
KKR Credit Advisors (US) LLC provides investment advisory services. The Company offers portfolio management, financial planning, and investment consulting services.Founded: Jun 24, 2004…
KKR & Co. Inc. operates as an investment firm. The Company manages investments such as private equity, energy, infrastructure, real estate, credit strategies, and hedge funds.Employees: 1.4K…
KKR & Co. Inc. Cl A. KKR & Co., Inc. engages in the provision of investment and private equity asset management services. It manages investments across multiple asset classes includes private ...…