:Kohlberg Kravis Roberts
{{short description|American investment management firm}}
{{Use mdy dates|date=December 2023}}
{{Infobox company
| name = KKR & Co. Inc.
| logo = Kohlberg Kravis Roberts (logo).svg
| logo_size = 220px
| image = Hudson_Yards_from_Hudson_Commons_(95131p)_(30_Hudson_Yards).jpg
| image_size = 220px
| image_caption = Headquarters at 30 Hudson Yards
| type = Public
| traded_as = {{ubl|{{NYSE|KKR}}|S&P 500 component}}
| founders = {{ubl|Henry Kravis|George R. Roberts|Jerome Kohlberg Jr.}}
| key_people = {{plainlist|
- Henry R. Kravis {{nowrap|(co-executive chairman)}}
- George R. Roberts {{nowrap|(co-executive chairman)}}
- Joseph Bae (co-CEO)
- Scott Nuttall (co-CEO)}}
| industry = Financial services:
Private equity
(1976–present)
Investment banking
(2004–present)
| products = {{ubl|Management buyouts|Leveraged finance|Venture capital|Growth capital}}
| revenue = {{increase}} {{US$|21.88 billion|link=yes}} (2024)
| net_income = {{decrease}} US$3.076 billion (2024)
| aum = {{increase}} US$637.6 billion (2024)
| assets = {{increase}} US$360.1 billion (2024)
| equity = {{increase}} US$23.65 billion (2024)
| num_employees = 4,834
| num_employees_year = 2024
| founded = {{Start date and age|1976}} (as Kohlberg Kravis Roberts & Co.)
| hq_location = 30 Hudson Yards
New York City, U.S.
| locations = 20 offices in 16 countries (2010)
| area_served = Worldwide
| website = {{URL|kkr.com}}
| footnotes = {{cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1404912/000140491225000015/kkr-20241231.htm |title=KKR & Co. Inc. 2024 Annual Report (Form 10-K) |date=February 28, 2025 |website=SEC.gov |publisher=U.S. Securities and Exchange Commission}}
}}
KKR & Co. Inc., also known as Kohlberg Kravis Roberts & Co., is an American global private-equity and investment company. {{As of|2023|12|31|df=US}}, the firm had completed private-equity investments in portfolio companies with approximately $710 billion of total enterprise value.{{cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1404912/000140491224000005/kkr-20231231.htm |title=KKR & Co. Inc. 2023 Annual Report (Form 10-K) |date=February 29, 2024 |website=SEC.gov |publisher=U.S. Securities and Exchange Commission}}{{rp|page=8}} Its assets under management (AUM) and fee paying assets under management (FPAUM) were $553 billion and $446 billion, respectively.{{r|10K|page=167}}
KKR was founded in 1976 by Jerome Kohlberg Jr., and cousins Henry Kravis and George R. Roberts, all of whom had previously worked together at Bear Stearns, where they completed some of the earliest leveraged buyout transactions. Since its founding, KKR has completed a number of transactions, including the 1989 leveraged buyout of RJR Nabisco, which was the largest buyout in history to that point, as well as the 2007 buyout of TXU, which is currently the largest buyout completed to date.[https://query.nytimes.com/gst/fullpage.html?res=9804E5D61331F935A1575BC0A9679C8B63 "What's An Aging 'Barbarian' To Do?"] The New York Times, August 26, 2001.[https://www.nytimes.com/2008/09/07/business/07kkr.html "What Does Henry Kravis Want?"] The New York Times, September 6, 2008.
In October 2009, KKR listed shares in the company through KKR & Co., an affiliate that holds 30% of the firm's ownership equity, with the remainder held by the firm's partners. In March 2010, KKR filed to list its shares on the New York Stock Exchange (NYSE),[https://web.archive.org/web/20100317011332/http://www.pehub.com/66024/kkr-files-for-nyse-listing "KKR Files for NYSE Listing"], March 17, 2010. with trading commencing four months later, on July 15, 2010.
The firm
The firm employed 4,490 employees as of December 31, 2023.{{Cite web |date=2024-02-29 |title=KKR & CO. INC. |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1404912/000140491224000005/kkr-20231231.htm |access-date=2024-03-25 |website=www.sec.gov |language=en}} KKR is headquartered at 30 Hudson Yards, Manhattan, New York, with offices in Beijing, Dubai, Dublin, Houston, Hong Kong, London, Luxembourg, Madrid, Menlo Park, Mumbai, Paris, Riyadh, San Francisco, São Paulo, Seoul, Singapore, Shanghai, Sydney and Tokyo.[http://www.kkr.com/our-firm/locations KKR locations] (company Web site); retrieved March 8, 2010. {{webarchive|url=https://web.archive.org/web/20090118094022/http://www.kkr.com/company/locations.cfm|date=January 18, 2009}}
= Senior leadership =
- Chairmen: Henry Kravis and George Roberts{{cite news |title=KKR's Joseph Bae, Scott Nuttall succeed founders as co-CEOs |url=https://www.cnbc.com/2021/10/11/kkrs-joseph-bae-scott-nuttall-succeed-founders-as-co-ceos.html |access-date=7 April 2024 |work=CNBC |date=11 October 2021}} (since 1987)
- Chief Executives: Scott Nuttall and Joseph Bae (since 2021)
= Former leaders =
- Jerome Kohlberg Jr. (1976–1987); co-chairmen
- Henry Kravis, George Roberts, and Jerome Kohlberg Jr. (1976–1987); co-CEOs
- Henry Kravis and George Roberts (1987–2021); co-CEOs
= Business structure =
In a 2016 interview with Bloomberg, founder Henry Kravis described KKR in terms of three broad buckets: private markets, public markets, and capital markets.{{cite web|last1=Kelly|first1=Jason|title=Henry Kravis Q&A: 'Worry About What You Might Lose on the Downside'|url=https://www.bloomberg.com/features/2016-henry-kravis-interview/|website=Bloomberg Markets|date=June 13, 2016}}
History
{{history of private equity and venture capital}}
=Founding and early history=
While running the corporate finance department for Bear Stearns in the 1960s and 1970s, Jerome Kohlberg, and later Henry Kravis and George Roberts, completed a series of what they described as "bootstrap" investments.{{cite web|url=https://www.forbes.com/sites/antoinegara/2019/05/06/kkr-private-equity-george-roberts-henry-kravis/|title=Gentlemen At The Gate: With Trillions Pouring In, KKR And Its Peers Must Build Up Rather Than Break Up|last=Gara|first=Antoine|website=Forbes|language=en|access-date=April 15, 2020}} They targeted family-owned businesses, many of which had been founded in the years following World War II, that were facing succession issues. Many of these companies lacked a viable exit for their founders because they were too small to be taken public and the founders were reluctant to sell out to competitors.{{Cite news|last=Beaudette|first=Marie|url=https://www.wsj.com/articles/kkr-founder-jerome-kohlberg-dies-at-90-1438447325|title=KKR Founder Jerome Kohlberg Dies at 90|date=August 1, 2015|work=The Wall Street Journal|access-date=April 15, 2020|language=en-US|issn=0099-9660}}{{cite web|url=https://blogs.harvard.edu/nhonma/2008/12/27/private-equity-history-and-further-development/|title=Private Equity » Private equity, history and further development|access-date=April 15, 2020}}
File:Henry Kravis.png speaking at the World Economic Forum in 2009]]
In 1964, Lewis Cullman acquired and then sold Orkin Exterminating Company in what some call the first significant leveraged buyout transaction.{{Cite news|url=https://www.nytimes.com/2004/07/10/your-money/book-report-cant-take-it-with-you.html|title=Book Report : CAN'T TAKE IT WITH YOU|first1=Sharon|last1=Reier|first2=International Herald|last2=Tribune|newspaper=The New York Times|date=July 10, 2004}}{{Cite news|url=https://www.wsj.com/articles/the-case-for-giving-money-away-now-11560714097|title=Opinion | The Case for Giving Money Away Now|first=Ray D.|last=Madoff|newspaper=Wall Street Journal|date=June 16, 2019|via=wsj.com}} In the following years the three Bear Stearns bankers completed a series of buyouts including Stern Metals (1965), Incom (a division of Rockwood International, 1971), Cobblers Industries (1971), and Boren Clay (1973), as well as Thompson Wire, Eagle Motors and Barrows through their investment in Stern Metals. Despite a number of highly successful investments, the $27 million investment in Cobblers ended in bankruptcy.Burrough, Bryan. Barbarians at the Gate. New York: Harper & Row, 1990; pp. 133–136.{{Cite book|last=Anders|first=George|url=https://openlibrary.org/works/OL15146311W/Merchants_of_debt?edition=key%3A/books/OL24213850M|title=Merchants of Debt: KKR and the Mortgaging of American Business|date=2002|publisher=Beard Books|isbn=978-1-58798-125-8|page=78|language=en}}
By 1976, tensions had built up between Bear Stearns and Kohlberg, Kravis and Roberts, which led to the formation of Kohlberg Kravis Roberts & Co.{{Cite book|last=Baldwin|first=Adam|url=https://books.google.com/books?id=2xwFCAAAQBAJ&q=By%201976,%20tensions%20between%20Bear%20Stearns%20and%20Kohlberg,%20Kravis%20and%20Roberts%20led%20to%20Kohlberg%20Kravis%20Roberts%20&pg=PA147|title=Heroes and Villains of Finance: The 50 Most Colourful Characters in The History of Finance|date=April 17, 2015|publisher=John Wiley & Sons|isbn=978-1-119-03900-6|language=en}} Most notably, Bear Stearns executive Cy Lewis had rejected repeated proposals to form a dedicated investment fund within Bear Stearns.{{cite book |last1=Nkambule |first1=Sicelo |title=A Pursuit of Wealth |date=May 20, 2014 |publisher=Nathan Eli |isbn=9781312206557}} The name had been planned to be Kohlberg Roberts Kravis, but public relations advisors preferred the sound of KKR.{{cite book|last=Davidoff|first=Steven M.|title=Gods at War: Shotgun Takeovers, Government by Deal, And the Private Equity Implosion|year=2009|publisher=John Wiley & Sons, Inc.|location=Hoboken, New Jersey|isbn=978-0-470-43129-0|page=24}}
The new KKR completed its first buyout, of manufacturer A.J. Industries, in 1976.{{Cite news|last=Lattman|first=Peter|url=https://www.wsj.com/articles/SB125728386404526153|title=KKR — a Q&A With Pioneers in M&A|date=November 5, 2009|work=The Wall Street Journal|access-date=April 15, 2020|language=en-US|issn=0099-9660}} KKR raised capital from a small group of investors including the Hillman Company and First Chicago Bank.{{cite web|date=April 15, 2017|title=Henry Hillman, Who Helped Fund KKR, Kleiner Perkins, Dies at 98|url=https://www.bloomberg.com/news/articles/2017-04-15/henry-hillman-who-helped-fund-kkr-kleiner-perkins-dies-at-98?sref=eMecddu3|access-date=April 15, 2020|website=Bloomberg.com}}{{Cite news|last=McCartney|first=Robert J.|url=https://www.washingtonpost.com/archive/business/1991/04/24/kkr-bets-its-money-on-the-banks/2ea40bf6-f827-4024-b30f-8f4d5afcd40a/|title=KKR BETS ITS MONEY ON THE BANKS|date=April 24, 1991|newspaper=Washington Post|access-date=April 15, 2020|language=en-US|issn=0190-8286}} By 1978, with the revision of the ERISA regulations, the nascent KKR was successful in raising its first institutional fund with over $30 million of investor commitments.Burrough, Bryan. Barbarians at the Gate (New York: Harper & Row, 1990), pp. 136-140. In 1981, KKR expanded its investor base after the Oregon State Treasury's public pension fund invested in KKR's acquisition of retailer Fred Meyer, Inc. Oregon State remains an active investor in KKR funds.{{Cite news|author=Kara Scannell|url=https://www.wsj.com/articles/SB1033684078443189913 |url-access=subscription |title=Kohlberg Kravis Is in Talks To Sell a Stake to Investors|date=October 4, 2002|work=The Wall Street Journal|access-date=April 15, 2020|language=en-US|issn=0099-9660}}{{cite web|url=https://www.bizjournals.com/portland/stories/1996/09/09/story8.html |first1=Michael |last1=Rose |date=September 8, 1996 |title=Fred Meyer stock offering seen as KKR divestiture strategy|website=Portland Business Journal |access-date=April 15, 2020}}
In 1979 KKR completed a risky, precedent-setting ($380 million) public-to-private leveraged buyout of a large conglomerate Houdaille Industries, a well-known producer of machine tools, industrial pipes, chrome-plated car bumpers and torsional viscous dampers, which they signed the previous year.{{Holland1989}}, pp. 149–169. It soon ended in a spectacular failure, breakup of the half-a-century-old company and loss of thousands of jobs, even though creditors earned a profit.{{cite news|last=Holl |first=Max |url=https://www.washingtonpost.com/archive/opinions/1989/04/23/how-to-kill-a-company/6c4ecddb-a0a6-47c7-a810-4c552f6e2205 |title=How To Kill A Company |newspaper=The Washington Post |date=April 23, 1989 |access-date=May 26, 2022}}
The firm's acquisitions during the 1980s buyout boom include:
class="wikitable" |
Investment
! style="width:auto" | Year Acquired ! Description of transaction ! style="width:auto" | Ref. |
---|
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| Malone & Hyde | 1984 | KKR completed the first buyout of this public company by tender offer, by acquiring the food distributor and supermarket operator together with the company's chairman Joseph R. Hyde III. |
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| 1984 | style="width:"74%"; vertical-align:top;" | KKR completed the first billion-dollar buyout transaction to acquire the leisure-time company with interests in television, movie theaters, and tourist attractions. The buyout comprised the acquisition of 100% of the outstanding shares for $842 million and the assumption of $170 million of the company's outstanding debt. |
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| 1985 | KKR sponsored the $6.1 billion management buyout of Beatrice, which owned Samsonite and Tropicana among other consumer brands. At the time of its closing in 1985, Beatrice was the largest buyout completed. |Dodson, Steve. [https://select.nytimes.com/gst/abstract.html?res=F50E17F6385C0C748DDDA80994DD484D81 "Beatrice Deal Is Biggest Buyout Yet"]. The New York Times, November 17, 1985.Sterngold, James. [https://query.nytimes.com/gst/fullpage.html?res=940DE1DC1038F93BA15757C0A96E948260 "Drexel's Role in Beatrice Deal Examined"]. The New York Times, April 28, 1988. |
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| Safeway | 1986 | style="width:"74%"; vertical-align:top;" | KKR completed a friendly $5.5 billion buyout of Safeway to help management avoid hostile overtures from Herbert and Robert Haft of Dart Drug. Safeway was taken public again in 1990. |
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| Jim Walter Corp. | 1987 | style="width:"74%"; vertical-align:top;" | KKR acquired the company for $3.3 billion in early 1988 but faced issues with the buyout almost immediately. Most notably, a subsidiary of Jim Walter Corp (Celotex) faced a large asbestos lawsuit and incurred liabilities that the courts ruled would need to be satisfied by the parent company. In 1989, the holding company which KKR used for the Jim Walter buyout filed for Chapter 11 bankruptcy protection. |Feder, Barnaby. [https://query.nytimes.com/gst/fullpage.html?res=950DE5DF133FF931A35757C0A96F948260 "Asbestos: The Saga Drags On"]. The New York Times, April 2, 1989.[https://query.nytimes.com/gst/fullpage.html?res=950DE0D7143AF93BA15751C1A96F948260 "Chapter 11 For Kohlberg, Kravis Unit"]. The New York Times, December 28, 1989. |
=Buyout of RJR Nabisco=
{{main|RJR Nabisco}}
At age 61, Kohlberg resigned in 1987 (he later founded his own private equity firm, Kohlberg & Co.), and Henry Kravis succeeded him as senior partner. Under Kravis and Roberts, the firm was responsible for the 1988 leveraged buyout of RJR Nabisco. RJR Nabisco was the largest buyout in history at that time, at $25 billion, and remained the largest buyout for the next 17 years. The deal was chronicled in Barbarians at the Gate: The Fall of RJR Nabisco, and later made into a television movie starring James Garner.[https://query.nytimes.com/gst/fullpage.html?res=9C0CE6DA1530F932A15752C0A966958260 "The Granddaddy Of All Takeovers"], The New York Times Book Review, January 21, 1990.
In 1988, F. Ross Johnson was the president and CEO of RJR Nabisco, a leading producer of food and tobacco products, formed in 1985 by the merger of Nabisco Brands and R.J. Reynolds Tobacco Company. In October of that year, Johnson proposed a $17 billion ($75 per share) management buyout of the company with the financial backing of investment bank Shearson Lehman Hutton and its parent company, American Express.[https://query.nytimes.com/gst/fullpage.html?res=940DE3D8113AF932A15753C1A96E948260 "Nabisco Executives Offer $17 Billion for Company"]. The New York Times, October 21, 1988.[https://query.nytimes.com/gst/fullpage.html?res=940DE6DD143EF931A15753C1A96E948260 "Shearson Risks, Rewards on RJR Nabisco"]. The New York Times, October 22, 1988.
Several days later, Kravis, who had originally suggested the idea of the buyout to Johnson, presented a new bid for $20.3 billion ($90 per share) financed with an aggressive debt package.[https://query.nytimes.com/gst/fullpage.html?res=940DE1DF1738F937A15753C1A96E948260 "Nabisco Bid Seen by Kohlberg"]. The New York Times, October 24, 1988.[https://query.nytimes.com/gst/fullpage.html?res=940DE0DF123AF936A15753C1A96E948260 "Buyout Specialist Bids $20.3 Billion For RJR Nabisco"]. The New York Times, October 25, 1988.[https://query.nytimes.com/gst/fullpage.html?res=940DE5DB113FF935A15753C1A96E948260 "RJR Nabisco Bid Gives New Respectability To Giant Deals Financed With Huge Debt"]. The New York Times, October 26, 1988. KKR had the support of equity co-investments from pension funds and other institutional investors, including Coca-Cola, Georgia-Pacific and United Technologies corporate pension funds, as well as endowments from MIT, Harvard and the New York State Common Retirement Fund.[https://query.nytimes.com/gst/fullpage.html?res=940DE3D71F30F932A05753C1A96E948260 "Several Giant Pension Funds Investing in Offer for Nabisco"]. The New York Times, October 31, 1988. However, KKR faced criticism from existing investors over the firm's use of hostile tactics in the buyout of RJR.[https://query.nytimes.com/gst/fullpage.html?res=940DE5DC153CF931A35752C1A96E948260 "Concern Over Kohlberg, Kravis Strategy"]. The New York Times, November 2, 1988.
KKR proposed to provide a joint offer with Johnson and Shearson Lehman but was rebuffed and Johnson attempted to stonewall KKR's access to financial information from RJR.[https://query.nytimes.com/gst/fullpage.html?res=940DE5DA103FF935A15753C1A96E948260 "RJR Nabisco Bidders Said to Talk"]. The New York Times, October 26, 1988.[https://query.nytimes.com/gst/fullpage.html?res=940DE1DB123CF931A35751C1A96E948260 "The Nabisco Battle's Key Moment"]. The New York Times, December 2, 1988.[https://query.nytimes.com/gst/fullpage.html?res=940DE7DA1639F934A15753C1A96E948260 Joint Deal For Nabisco Is Rejected]. The New York Times, October 27, 1988.[https://query.nytimes.com/gst/fullpage.html?res=940DE7DA133CF93AA15753C1A96E948260 RJR Nabisco Will Give Kohlberg, Kravis Data]. The New York Times, October 27, 1988 Rival private equity firm Forstmann Little & Co. was invited into the process by Shearson Lehman but attempted to provide a bid for RJR with a consortium of Goldman Sachs Capital Partners, Procter & Gamble, Ralston Purina and Castle & Cooke.[https://query.nytimes.com/gst/fullpage.html?res=940DE6D8153EF934A25752C1A96E948260 Forstmann Declines to Bid on RJR Nabisco]. The New York Times, November 17, 1988. Ultimately, the Forstmann consortium came apart and did not provide a final bid for RJR.[https://query.nytimes.com/gst/fullpage.html?res=940DE1D9153BF93BA35752C1A96E948260 "Suitors Quarrel Over RJR Nabisco"]. The New York Times, November 8, 1988.
In November 1988, RJR set guidelines for a final bid submission at the end of the month.[https://query.nytimes.com/gst/fullpage.html?res=940DEEDE103DF93AA35752C1A96E948260 RJR Nabisco Discloses Guidelines for Its Buyout]. The New York Times, November 9, 1988. The management and Shearson group submitted a final bid of $112, a figure they felt certain would enable them to outflank any response by Kravis and KKR. KKR's final bid of $109, while a lower dollar figure, was ultimately accepted by the board of directors of RJR Nabisco.[https://query.nytimes.com/gst/fullpage.html?res=940DE2DB1E3BF932A35751C1A96E948260 "RJR Nabisco Suitor Claims $24.88 Billion Victory"]. The New York Times, December 1, 1988. KKR's offer was guaranteed, whereas the management offer lacked a "reset", meaning that the final share price might have been lower than their stated $112 per share.[https://query.nytimes.com/gst/fullpage.html?res=940DE6D91039F93BA35751C1A96E948260 "RJR Nabisco Explains Its Choice"]. The New York Times, December 8, 1988
Additionally, many in RJR's board of directors had grown concerned at recent disclosures of Ross Johnson's unprecedented golden parachute deal.[https://query.nytimes.com/gst/fullpage.html?res=940DE4DF133CF936A35752C1A96E948260 "Nabisco Executives to Take Huge Gains in Their Buyout"]. The New York Times, November 5, 1988.[https://query.nytimes.com/gst/fullpage.html?res=940DEFDD1E3CF930A25752C1A96E948260 "A Growing Backlash Against Greed"]. The New York Times, November 13, 1988 Time magazine featured Johnson on the cover of their December 1988 issue along with the headline, "A Game of Greed: This man could pocket $100 million from the largest corporate takeover in history. Has the buyout craze gone too far?".[https://web.archive.org/web/20050313123621/http://www.time.com/time/magazine/0,9263,7601881205,00.html "Game of Greed"], Time Magazine (1988) KKR's offer was welcomed by the board, and, to some observers, it appeared that their elevation of the reset issue as a deal-breaker in KKR's favor was little more than an excuse to reject Johnson's higher bid of $112 per share. Johnson received $53 million from the buyout.[https://query.nytimes.com/gst/fullpage.html?res=940DE2D6153CF931A35751C1A96E948260 "Losers Get Some Spoils In Fight for RJR Nabisco"]. The New York Times, December 2, 1988 KKR collected a $75 million fee in the RJR takeover.[https://query.nytimes.com/gst/fullpage.html?res=950DE3DF1331F932A35751C0A96F948260 "Kohlberg, Kravis to Collect $75 Million RJR Nabisco Fee"]. The New York Times, February 1, 1989. At $31.1 billion of а transaction value (including assumed debt), RJR Nabisco was, at the time, by far the largest leveraged buyout in history.[https://query.nytimes.com/gst/fullpage.html?res=9806E0D7173EF931A25750C0A96F958260 "RJR Nabisco, An Epilogue"]. The New York Times, March 12, 1999.
=Early 1990s: The aftermath of RJR Nabisco=
The buyout of RJR Nabisco was completed in April 1989 and KKR would spend the early 1990s repaying the RJR's enormous debt load through a series of asset sales and restructuring transactions.[https://query.nytimes.com/gst/fullpage.html?res=950DE6DE123AF93AA15757C0A96F948260 "Kohlberg, Kravis Now RJR's Owner"]. Associated Press, April 29, 1989.[https://query.nytimes.com/gst/fullpage.html?res=940DE2D8103CF931A35751C1A96E948260 "History Of The RJR Nabisco Takeover"]. The New York Times, December 2, 1988.[https://query.nytimes.com/gst/fullpage.html?res=940DE0D7103CF931A35751C1A96E948260 "Is RJR Worth $25 Billion?"] The New York Times, December 2, 1988. KKR did not complete a single investment in 1990, the first such year since 1982. KKR began to focus primarily on its existing portfolio companies acquired during the buyout boom of the late 1980s. Six of KKR's portfolio companies completed IPOs in 1991, including RJR Nabisco and Duracell.[https://www.fundinguniverse.com/company-histories/kohlberg-kravis-roberts-co-history Kohlberg Kravis Roberts & Co. Company History]. Funding Universe; retrieved February 16, 2009.
As the new decade began, KKR began restructuring RJR. In January 1990, it completed the sale of RJR's Del Monte Foods to a group led by Merrill Lynch. KKR had originally identified a group of divisions that it could sell to reduce debt.[https://query.nytimes.com/gst/fullpage.html?res=9C0CE5D61631F932A25752C0A966958260 "RJR Completes Sale of Del Monte"]. The New York Times, January 11, 1990. Over the coming years, RJR would pursue a number of additional restructurings, equity injections, and public offerings of stock to provide the company with added financial flexibility. KKR contributed $1.7 billion of new equity into RJR in July 1990 to complete a restructuring of the company's balance sheet. KKR's equity contribution as part of the original leveraged buyout of RJR had been only $1.5 billion.[https://query.nytimes.com/gst/fullpage.html?res=9C0CE3D9163DF934A15755C0A966958260 "Kohlberg, Kravis, Roberts Loan to RJR Renegotiated"]. The New York Times, June 27, 1990.[https://query.nytimes.com/gst/fullpage.html?res=9C0CE4DC1139F934A25754C0A966958260 "RJR Move Helps Lift 'Junk Bonds'"]. The New York Times, July 17, 1990. In mid-December 1990, RJR announced an exchange offer that would swap debt in RJR for a new public stock in the company, effectively an unusual means of taking RJR public again and simultaneously reducing debt on the company.[https://query.nytimes.com/gst/fullpage.html?res=9C0CE0D8173CF93BA25751C1A966958260 "RJR Offers Cash and Stock for 'Junk Bonds'"]. The New York Times, December 18, 1990.
RJR issued additional stock to the public in March 1991 to reduce debt further, resulting in an upgrade of the credit rating of RJR's debt from junk to investment grade. KKR began to reduce its ownership in RJR in 1994, when its stock in RJR was used as part of the consideration for its leveraged buyout of Borden, Inc., a producer of food and beverage products, consumer products, and industrial products.[https://query.nytimes.com/gst/fullpage.html?res=9507E2DB143BF930A2575AC0A962958260Borden Agrees to a Takeover]. The New York Times, September 13, 1994.[https://query.nytimes.com/gst/fullpage.html?res=9505E1DC153BF937A2575AC0A962958260 "Kohlberg's Impetus in Borden Deal"]. The New York Times, September 14, 1994.
[https://query.nytimes.com/gst/fullpage.html?res=990CE3DA153AF937A1575AC0A962958260 "Borden Signs Agreement for Sale to Kohlberg"]. The New York Times, September 24, 1994.[https://query.nytimes.com/gst/fullpage.html?res=9C01E4DA1138F931A15751C1A962958260 "Kohlberg, Kravis Says It Has Control of Borden"]. The New York Times, December 22, 1994. The following year, in 1995, KKR would divest itself of its final stake in RJR Nabisco when Borden sold a $638 million block of stock.[https://query.nytimes.com/gst/fullpage.html?res=990CE0DE1339F935A25750C0A963958260 "Kohlberg, Kravis Plans to Divest Remaining Stake in RJR Nabisco"].
The New York Times, March 16, 1995.
While KKR no longer had any ownership of RJR Nabisco by 1995, its original investment would not be fully realized until KKR exited its last investment in 2004. After sixteen years of efforts, including contributing new equity, taking RJR public, asset sales, and exchanging shares of RJR for the ownership of Borden, Inc., KKR finally sold the last remnants of its 1989 investment. In July 2004, KKR agreed to sell its stock in Borden Chemical to Apollo Management for $1.2 billion.[https://query.nytimes.com/gst/fullpage.html?res=9C01EFD9143BF934A35754C0A9629C8B63 "Apollo Buys Borden Chemical for $649 million"]. The New York Times, July 7, 2004.
=Early 1990s: Investments=
In the early 1990s, 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 was described as leveraged buildups or rollups. One of KKR's largest investments in the 1990s was the leveraged buildup of Primedia in partnership with former executives of Macmillan Publishing, which KKR had failed to acquire in 1988.[https://query.nytimes.com/gst/fullpage.html?res=940DE3D81438F937A35752C1A96E948260 "Kohlberg Ends Bid for Macmillan"]. The New York Times, November 4, 1988. KKR created Primedia's predecessor, K-III Communications,[https://query.nytimes.com/gst/fullpage.html?res=9C06E4DA1630F932A35752C1A961958260 K-III's New Name To Be 'Primedia']. The New York Times, November 1, 1997. a platform to buy media properties, initially completing the $310 million divisional buyout of the book club division of Macmillan along with the assets of Intertec Publishing Corporation in May 1989.[https://query.nytimes.com/gst/fullpage.html?res=950DE1DB113AF930A15756C0A96F948260 "Macmillan Book Club Unit And a Publisher Being Sold"]. The New York Times, May 23, 1989.[https://www.nytimes.com/2005/10/26/business/media/26place.html "As Primedia Falls, Preferred Stock Lives Up to Its Name"]. The New York Times, October 26, 2005.
During the early 1990s, K-III continued acquiring publishing assets, including a $650 million acquisition from News Corporation in 1991.[https://archive.today/20130131012059/http://query.nytimes.com/gst/fullpage.html?res=9D0CE1DF103BF93AA15757C0A967958260 Kohlberg, Kravis Rouses Itself], The New York Times, April 29, 1991 K-III went public, however instead of cashing out, KKR continued to make new investments in the company in 1998, 2000 and 2001 to support acquisition activity.[https://query.nytimes.com/gst/fullpage.html?res=990CEEDC133CF935A3575AC0A963958260 "K-III Communications Files Plan For an Initial Offering of Stock"]. The New York Times, September 6, 1995. In 2005, Primedia redeemed KKR's preferred stock in the company but KKR was estimated to have lost hundreds of millions of dollars on its common stock holdings as the price of the company's stock collapsed.
In 1991, KKR partnered with Fleet/Norstar Financial Group in the 1991 acquisition of the Bank of New England, from the US Federal Deposit Insurance Corporation.[https://query.nytimes.com/gst/fullpage.html?res=9D0CEFDF1131F930A15757C0A967958260 Regulators Pick Buyer To Operate New England Bank]. The New York Times, April 23, 1991. In January 1996, KKR would exchange its investment for a 7.5% interest in Fleet Bank.[https://query.nytimes.com/gst/fullpage.html?res=9403E7DE1239F930A35752C0A960958260 "Kohlberg Kravis in Swap for 7.5% of Fleet"]. The New York Times, January 3, 1996. KKR completed the 1992 buyout of American Re Corporation from Aetna[https://query.nytimes.com/gst/fullpage.html?res=9E0CE1DC133EF93AA35755C0A964958260 "Kohlberg, Kravis in Aetna Reinsurance Deal"]. The New York Times, June 9, 1992. as well as a 47% interest in TW Corporation, later known as The Flagstar Companies and owner of Denny's in 1992.[https://query.nytimes.com/gst/fullpage.html?res=9E0CE6DD1E3BF935A15755C0A964958260 "Kohlberg, Kravis Plans Stake in TW"]. The New York Times, June 26, 1992. Among the other notable investments KKR completed in the early 1990s included World Color Press (1993–95),[https://query.nytimes.com/gst/fullpage.html?res=9F0CE0DB153FF93AA25752C0A965958260 "Kohlberg Unit to Buy Alden Press"]. The New York Times, January 19, 1993. RELTEC Corporation (1995) and Bruno's (1995).[https://query.nytimes.com/gst/fullpage.html?res=990CE1D6133DF932A15757C0A963958260 "Kohlberg, Kravis to Acquire Bruno's Supermarket Chain"]. The New York Times, April 21, 1995.
=1996–1999=
By the mid-1990s, the debt markets were improving and KKR had moved on from the RJR Nabisco buyout. In 1996, KKR was able to complete the bulk of fundraising for what was then a record $6 billion private equity fund, the KKR 1996 Fund.[https://query.nytimes.com/gst/fullpage.html?res=940DE1DC173AF930A2575AC0A960958260 "$5 Billion Fund By Kohlberg Seen"]. The New York Times, September 13, 1996. However, KKR was still burdened by the performance of the RJR investment and repeated obituaries in the media.[https://query.nytimes.com/gst/fullpage.html?res=990CE6D61E3CF933A2575BC0A963958260 "At K.K.R., the Glory Days Are Past"]. The New York Times, August 10, 1995. KKR was required by its investors to reduce the fees it charged and to calculate its carried interest based on the total profit of the fund (i.e., offsetting losses from failed deals against the profits from successful deals).
File:Regal Cinemas Imax Theatre.jpg in 1998, only to see the company in bankruptcy by 2000]]
KKR's activity level would accelerate over the second half of the 1990s making a series of notable investments including Spalding Holdings Corporation and Evenflo (1996),[https://query.nytimes.com/gst/fullpage.html?res=9407E4DC1E31F935A2575BC0A960958260 "Kohlberg Plans Stake In Spalding And Evenflo"]. The New York Times, August 16, 1996. Newsquest (1996),[http://www.fundinguniverse.com/company-histories/Newsquest-plc-Company-History.html "Newsquest Company History"]. FundingUniverse.com; retrieved February 16, 2009. KinderCare Learning Centers (1997),[https://query.nytimes.com/gst/fullpage.html?res=9E03E1DF123FF937A35753C1A960958260 "Kohlberg Kravis Will Buy Kindercare for $467 Million"]. The New York Times, October 4, 1996. Amphenol Corporation (1997),[https://query.nytimes.com/gst/fullpage.html?res=9D0CE7DD143AF937A15752C0A961958260 "Kohlberg Kravis Set to Offer $1.2 Billion for Cable Maker"]. The New York Times, January 24, 1997. Randalls Food Markets (1997),{{Cite news|url=https://www.wsj.com/articles/SB867508336192598500|title=KKR Completes Purchase Of Randalls for $225 Million|last=Roundup|first=An Interactive Edition News|date=June 28, 1997|newspaper=The Wall Street Journal|issn=0099-9660|access-date=December 19, 2016}}[https://query.nytimes.com/gst/fullpage.html?res=9905E7DB1031F932A0575BC0A961958260 "Supermarkets Get a Brand New Bag"]. The New York Times, August 31, 1997. The Boyds Collection (1998),[http://www.fundinguniverse.com/company-histories/The-Boyds-Collection-Ltd-Company-History.html "The Boyds Collection, Ltd. Company History"]. FundingUniverse.com; retrieved February 16, 2009. MedCath Corporation (1998),[https://query.nytimes.com/gst/fullpage.html?res=9C03E1DA1739F937A25750C0A96E958260 "Kohlberg Kravis And Welsh Carson Acquiring Medcath"]. The New York Times, March 14, 1998. Willis Group Holdings (1998),[https://query.nytimes.com/gst/fullpage.html?res=9E0CEFDC1439F930A15754C0A96E958260 "Kohlberg Kravis-Led Group To Buy Big Insurance Broker"]. The New York Times, July 23, 1998. Smiths Group (1999), and Wincor Nixdorf (1999).[http://www.fundinguniverse.com/company-histories/Wincor-Nixdorf-Holding-GmbH-Company-History.html "Wincor Nixdorf Holding Company History"]. FundingUniverse.com; retrieved February 16, 2009.
KKR's largest investment of the 1990s would be one of its least successful. In January 1998, KKR and Hicks, Muse, Tate & Furst agreed to the $1.5 billion buyouts of Regal Entertainment Group.[https://query.nytimes.com/gst/fullpage.html?res=9C0CE6DF1E38F932A15752C0A96E958260 2 Buyout Firms Make Deal To Acquire Regal Cinemas]. The New York Times, January 21, 1998 KKR and Hicks Muse had initially intended to combine Regal with Act III Cinemas, which KKR had acquired in 1997 for $706 million[https://query.nytimes.com/gst/fullpage.html?res=9B01E4D8173EF932A15753C1A961958260 Kohlberg Kravis In $660 Million Deal For Act III Cinemas]. The New York Times, October 21, 1997. and United Artists Theaters, which Hicks Muse had agreed to acquire for $840 million in November 1997. 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.[https://query.nytimes.com/gst/fullpage.html?res=9C07E2DB163EF930A15751C0A96E958260 "Amid Blame, United Artists Sale Collapses"]. The New York Times, February 23, 1998. Two years later, in 2000, Regal encountered significant financial issues and was forced to file for bankruptcy protection; the company passed to billionaire investor Philip Anschutz.[https://query.nytimes.com/gst/fullpage.html?res=9C06E1DE153BF935A25752C1A9669C8B63 "Regal Cinemas Considers Filing For Bankruptcy"]. The New York Times, November 16, 2000.
=2000–2005=
File:Shoppers Drug Mart Dupont.jpg, the Canadian pharmacy was one of several successful buyouts in the early 2000s]]
At the start of the 21st century, the landscape of large leveraged buyout firms was changing. Several large and storied firms, including Hicks Muse Tate & Furst and Forstmann Little & Company were dragged down by heavy losses in the bursting of the telecom bubble. Although KKR's track record since RJR Nabisco was mixed, losses on such investments as Regal Entertainment Group, Spalding, Flagstar and RentPath (previously K-III Communications) were offset by successes in Willis Group, Wise Foods, Inc., Wincor Nixdorf and MTU Aero Engines, among others.
Additionally, KKR was one of the few firms that were 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.[https://query.nytimes.com/gst/fullpage.html?res=9D01EFDD1038F933A05752C1A9649C8B63 "BCE Sells Directory Unit"]. The New York Times, November 30, 2002. KKR was able to realize its investment in Shoppers Drug Mart through a 2002 IPO and subsequent public stock offerings.[http://www.allbusiness.com/retail-trade/4298050-1.html Shoppers Drug Mart Sells Shares]. Retail Merchandiser, March 17, 2004; retrieved February 16, 2009. {{webarchive |url=https://web.archive.org/web/20090117023305/http://www.allbusiness.com/retail-trade/4298050-1.html |date=January 17, 2009 }} The directories business would be taken public in 2004 as Yellow Pages Income Fund, a Canadian income trust.[https://web.archive.org/web/20040617081043/http://www.ypg.com/page.php/en/1/164.html "Yellow Pages Income Fund Announces, 43 Million Offering"]. Yellow Pages Group press release, May 26, 2004; retrieved February 16, 2009.
File:ToysRUs-UnitedSquare.jpg in 2004]]
In 2004 a consortium comprising KKR, Bain Capital and real estate development company Vornado Realty Trust announced the $6.6 billion acquisition of Toys "R" Us, the toy retailer. A month earlier, Cerberus Capital Management made a $5.5 billion offer for both the toy and baby supplies businesses.Sorkin, Andrew Ross and Rozhon, Tracie. [https://www.nytimes.com/2005/03/17/business/17toys.html "Three Firms Are Said to Buy Toys 'R' Us for $6 Billion"]. New York Times, March 17, 2005. The Toys "R" Us buyout was one of the largest in several years.[https://www.wsj.com/articles/SB111110691050583265 What's Next for Toys 'R' Us?]. The Wall Street Journal, March 18, 2005. Following this transaction, by the end of 2004 and in 2005, major buyouts were once again becoming common and market observers were stunned by the leverage levels and financing terms obtained by financial sponsors in their buyouts.[https://www.usnews.com/usnews/biztech/articles/050418/18lbo.htm "Deal Mania: Shades of the '80s: The leveraged buyout is back in vogue"] {{webarchive|url=https://web.archive.org/web/20081101090038/http://www.usnews.com/usnews/biztech/articles/050418/18lbo.htm |date=November 1, 2008 }}. US News & World Report, April 10, 2005.
In 2005, KKR was one of seven private equity firms involved in the buyout of SunGard in a transaction valued at $11.3 billion. KKR's partners in the acquisition were Silver Lake Partners, Bain Capital, Goldman Sachs Capital Partners, Blackstone Group, Providence Equity Partners, and TPG Capital. This represented the largest leveraged buyout completed since the takeover of RJR Nabisco in 1988. 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.[https://www.nytimes.com/2005/03/29/business/29sungard.html "Capital Firms Agree to Buy SunGard Data in Cash Deal"]. The New York Times, March 29, 2005.[https://www.nytimes.com/2005/04/03/business/yourmoney/03dealbook.html "Do Too Many Cooks Spoil the Takeover Deal?"] The New York Times, April 3, 2005.
= Buyout Boom 2006–2007 =
In 2006, KKR raised a new $17.6 billion fund, the KKR 2006 Fund, with which the firm began executing a series of some of the largest buyouts in history. KKR's $44 billion takeover of Texas-based power utility TXU in 2007 proved to be the largest leveraged buyout of the mid-2000s buyout boom and the largest buyout completed to date.[http://dealbook.blogs.nytimes.com/2007/02/23/kkr-plans-record-buyout-with-txu-acquisition/?scp=1&sq=txu%20largest%20kkr&st=cse K.K.R., Texas Pacific Plan Record Buyout of TXU]. The New York Times, February 23, 2007. Among the most notable companies acquired by KKR in 2006 and 2007 were the following:
class="wikitable" |
Investment
! style="width:auto" | Year ! Company Description ! style="width:auto" | Ref. |
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| HCA |2006 |KKR and Bain Capital, together with Merrill Lynch and the Frist family (which had founded the company) completed a $31.6 billion acquisition of the hospital company 17 years after it was taken private for the first time in a management buyout. At the time of its announcement, the HCA buyout would be the first of several to set new records for the largest buyout, eclipsing the 1989 buyout of RJR Nabisco. It was later surpassed by the buyouts of EQ Office, and TXU. |
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|2006 |In August 2006, a consortium of KKR, Silver Lake Partners and AlpInvest Partners acquired a controlling 80.1% share of semiconductors unit of Philips for €6.4 billion. The new company, based in the Netherlands, was renamed NXP Semiconductors. |
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| TDC A/S |2006 |The Danish phone company was acquired by KKR, Apax Partners, Providence Equity Partners and Permira for €12.2 billion ($15.3 billion), which at the time made it the second largest European buyout in history. |"[https://www.boston.com/business/technology/articles/2005/12/01/takeover_firms_will_pay_153b_to_buy_danish_phone_giant_tdc/ Takeover firms will pay $15.3b to buy Danish phone giant TDC]." Bloomberg, December 1, 2005"[http://www.penews.com/today/supplements/casestudies/content/1047758801/container/2449030860/ TDC-One year on] {{Webarchive|url=https://web.archive.org/web/20150501125404/http://www.penews.com/today/supplements/casestudies/content/1047758801/container/2449030860/ |date=2015-05-01 }}." Dow Jones Private Equity News, January 22, 2007; retrieved February 16, 2009. |
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|2007 | style="width:74%; vertical-align:top;" |KKR completed a buyout of the chain of discount stores operating in the U.S. | style="width:6%; vertical-align:top;" |{{cite news|url=https://www.nytimes.com/2007/03/13/business/13shops.html|title=Buyout Firm Is Acquiring Dollar General Retail Chain|work=The New York Times|date=March 13, 2007|access-date=January 4, 2009|first=Jeremy W.|last=Peters}} |
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|2007 |KKR and Stefano Pessina, the company's deputy chairman and largest shareholder, acquired the UK drug store retailer for £12.4 billion ($24.8 billion) including assumed debt, after increasing their bid more than 40% amidst intense competition from Terra Firma Capital Partners and Wellcome Trust. The buyout came only a year after the merger of Boots Group plc (Boots the Chemist), and Alliance UniChem plc. |Werdigier, Julia. [https://www.nytimes.com/2007/04/25/business/worldbusiness/25boots.html "Equity Firm Wins Bidding for a Retailer, Alliance Boots"]. The New York Times, April 25, 2007.{{cite news|url=http://news.bbc.co.uk/2/hi/business/6586583.stm|title=Terra Firma drops Boots bid plan|publisher=BBC|date=April 24, 2007}} |
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| Biomet |2007 |Blackstone Group, KKR, TPG Capital and Goldman Sachs acquired the medical devices company for $11.6 billion. |
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|2007 |KKR and TPG Capital completed the $29 billion buyout of the credit and debit card payment processor and former parent of Western Union. Michael Capellas, previously the CEO of MCI Communications and Compaq was named CEO of the privately held company. |[https://www.nytimes.com/2007/04/03/business/03data.html "KKR Offer of $26 Billion Is Accepted by First Data"]. Reuters, April 3, 2007[https://www.nytimes.com/2007/04/03/business/03data.web.html "Kohlberg Kravis to Buy First Data for $29 Billion"]. The New York Times, April 3, 2007. |
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| TXU (Energy Future Holdings) |2007 |An investor group led by KKR and TPG Capital and together with Goldman Sachs completed the $44.37 billionSource: Thomson Financial buyout of the regulated utility and power producer. The investor group had to work closely with ERCOT regulators to gain the approval of the transaction but had significant experience with the regulators from their earlier buyout of Texas Genco. TXU is the largest buyout in history and retained this distinction when the announced buyout of BCE failed to close in December 2008. The deal was notable for a drastic change in environmental policy for the energy giant, in terms of its carbon emissions from coal power plants and funding alternative energy. |Lonkevich, Dan and Klump, Edward. [https://www.bloomberg.com/apps/news?pid=20601087&sid=ardubKH_t2ic&refer=home KKR, Texas Pacific Will Acquire TXU for $45 Billion] Bloomberg.com, February 26, 2007.{{cite news|url=https://www.reuters.com/article/bankingfinancial-SP/idUSL2669209820070226|title=KKR, Texas Pacific-led group to buy TXU Corp|work=Reuters|date=February 26, 2007|first=Dhanya|last=Skariachan}} |
Other non-buyout investments completed by KKR during this period included Legg Mason, Sun Microsystems, Tarkett, Longview Power Plant, and Seven Network. In October 2006, KKR acquired a 50% stake in Tarkett, a France-based distributor of flooring products, in a deal valued at about €1.4 billion ($1.8 billion). On November 20, 2006, KKR announced it would form a A$4 billion partnership with the Seven Network of Australia.[http://www.news.com.au/business/story/0,23636,20788067-31037,00.html "Seven in $4bn asset sell-off"] {{webarchive|url=https://web.archive.org/web/20071114005613/http://www.news.com.au/business/story/0%2C23636%2C20788067-31037%2C00.html |date=November 14, 2007 }}. News.com.au, November 20, 2006 On January 23, 2007, KKR announced it would invest $700 million through a PIPE investment in Sun Microsystems.{{cite web |url=http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/01-23-2007/0004511496 |title=Sun Microsystems Welcomes Endorsement and Investment From KKR |publisher=Sun Microsystems |date=January 23, 2007 |archive-url=https://web.archive.org/web/20070929132028/http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=%2Fwww%2Fstory%2F01-23-2007%2F0004511496 |archive-date=September 29, 2007 |url-status=dead}} In January 2008, KKR announced it had made a $1.25 billion PIPE investment in Legg Mason through a convertible preferred stock offering.[https://query.nytimes.com/gst/fullpage.html?res=9F0CE3D61230F936A25752C0A96E9C8B63 "Legg Mason Makes Deal With Equity Firm"]. Reuters, January 15, 2008
In addition to its successful buyout transactions, KKR was involved in the failed buyout of Harman International Industries ({{nyse|HAR}}), an upscale audio equipment maker. On April 26, 2007, Harman announced it had entered an agreement to be acquired by KKR and Goldman Sachs.[http://www.harman.com/press/pdf/harman-kkr.pdf Harman International Industries to be Acquired by KKR and GS Capital Partners]. Harman International press release, April 26, 2007; retrieved February 16, 2009. {{webarchive |url=https://web.archive.org/web/20070704011419/http://www.harman.com/press/pdf/harman-kkr.pdf |date=July 4, 2007 }} In September 2007, KKR and Goldman backed out of the $8 billion buyout of Harman. By the end of the day, Harman's shares had plummeted by more than 24% upon the news.[https://query.nytimes.com/gst/fullpage.html?res=9505E2D81E3AF931A1575AC0A9619C8B63 "Wary Buyers May Scuttle Two Deals"]. The New York Times, September 22, 2007.
=Initial public offering 2007=
In 2007, KKR filed with the Securities and Exchange Commission[https://www.sec.gov/Archives/edgar/data/1404912/000104746907005446/a2178646zs-1.htm KKR & Co. L.P., Form S-1], Securities And Exchange Commission, July 3, 2007 to raise $1.25 billion by selling an ownership interest in its management company.Jenny Anderson and Michael J. de la Merced. [https://www.nytimes.com/2007/07/04/business/04kkr.html "Kohlberg Kravis Plans to Go Public"], The New York Times, July 4, 2007. The filing came less than two weeks after the initial public offering of rival private equity firm Blackstone Group. KKR had previously listed its KPE vehicle in 2006, but 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.{{Cite web |last=Kennedy |first=Siobhan |date=August 23, 2007 |title=KKR postpones $1.25bn float as credit chaos deters buyers |url=http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2310515.ece |url-status=dead |archive-url=https://web.archive.org/web/20110612090934/http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2310515.ece |archive-date=June 12, 2011 |website=The Times}}
The following year, in July 2008, KKR announced a new plan to list its shares. The plan called for KKR to complete a reverse takeover of its listed affiliate KKR Private Equity Investors in exchange for a 21% interest in the firm.{{Cite web |last=Sorkin |first=Andrew Ross |date=July 28, 2008 |title=After Delay, KKR Finds a Way to Go Public |url=https://www.nytimes.com/2008/07/28/business/28kkr.html |url-access=subscription |url-status=live |archive-url=https://web.archive.org/web/20230909023337/https://www.nytimes.com/2008/07/28/business/28kkr.html |archive-date=September 9, 2023 |website=The New York Times}} In November 2008, KKR announced a delay of this transaction until 2009. Shares of KPE had declined significantly in the second half of 2008 with the onset of the 2008 financial crisis. KKR announced that it expected to close the transaction in 2009.{{Cite web |last=Sanati |first=Cyrus |date=November 3, 2008 |title=K.K.R. Calls Listing Delay 'Process Related' |url=http://dealbook.blogs.nytimes.com/2008/11/03/kkr-calls-listing-delay-process-related/ |url-status=dead |archive-url=https://web.archive.org/web/20120229032528/http://dealbook.nytimes.com/2008/11/03/kkr-calls-listing-delay-process-related/ |archive-date=February 29, 2012 |publisher=The New York Times |work=DealBook }} In October 2009, KKR listed shares in KKR & Co. on the Euronext exchange, replacing KPE, and anticipated a listing on the New York Stock Exchange in 2010. The public entity represented a 30% interest in Kohlberg Kravis Roberts.
=2010–2019=
In December 2011, Samson Investment Company was acquired by a group of private equity investors led by KKR for approximately $7.2 billion and Samson Resources Corporation was formed.{{Cite news |last=Zuckerman |first=Ryan Dezember And Gregory |date=November 23, 2011 |title=KKR Snatches Up Energy Firm Samson |language=en-US |work=The Wall Street Journal |url=https://www.wsj.com/articles/SB10001424052970204452104577055920286623332 |url-access=subscription |issn=0099-9660 |url-status=live |archive-url=https://web.archive.org/web/20230909023339/https://www.wsj.com/articles/SB10001424052970204452104577055920286623332 |archive-date= September 9, 2023 }} With the severe downturn in oil and natural gas prices, in September 2015, the Company went into Chapter 11 bankruptcy and during its bankruptcy process, sold several large assets.{{cite web|url=http://www.samson.com/company|title=About Samson |website=Samson Resources |access-date=January 10, 2022 |url-status=dead |archive-url=https://web.archive.org/web/20210410140439/http://www.samson.com/company/ |archive-date= April 10, 2021 }}
In 2012, KKR made its first retail real-estate investment in Yorktown Center in Illinois.{{cite news | url=https://www.reuters.com/article/us-kkr/kkr-makes-first-retail-real-estate-investment-idINBRE83I0SS20120419 | title=KKR makes first retail real-estate investment | newspaper=Reuters | date=April 19, 2012 }}
In March 2013, KKR exited its joint venture in music company BMG Rights Management, selling its 51% stake to Bertelsmann.{{cite web|url=https://www.privateequityinternational.com/kkr-to-exit-bmg/|title=KKR to exit BMG|first=Matthieu|last=Favas|website=Privateequityinternational.com|date=September 21, 2013}}
In January 2014, KKR acquired Sedgwick Claims Management Services Inc for $2.4 billion from two private equity companies - Stone Point, and Hellman & Friedman.{{cite news| url=https://www.reuters.com/article/us-sedgwick-sale-kkr-idUSBREA0Q0SX20140127| title=KKR to take control of Sedgwick Claims Management in $2.4 billion deal| author1=Neha Dimri| author2=Aman Shah| work=Reuters| date=January 28, 2014| access-date=July 1, 2017| archive-date=October 19, 2015| archive-url=https://web.archive.org/web/20151019042943/http://www.reuters.com/article/2014/01/27/us-sedgwick-sale-kkr-idUSBREA0Q0SX20140127| url-status=live}} In June 2014, KKR announced it was taking a one-third stake in Spanish energy business Acciona Energy, at a cost of €417 million ($567 million). The international renewable energy generation business operates renewable assets, largely wind farms, across 14 countries including the United States, Italy and South Africa.{{cite news|title=Equity investor KKR picks stakes in Acciona Energia unit for 417mn euros|url=http://www.spainnews.net/index.php/sid/223221423/scat/a5286f17ab326d15/ht/Equity-investor-KKR-picks-stakes-in-Acciona-Energia-unit-for-417mn-euros|archive-url=https://archive.today/20140625050312/http://www.spainnews.net/index.php/sid/223221423/scat/a5286f17ab326d15/ht/Equity-investor-KKR-picks-stakes-in-Acciona-Energia-unit-for-417mn-euros|url-status=dead|archive-date=June 25, 2014|access-date=June 24, 2014|publisher=Spain News.Net}} In August 2014, KKR announced it was investing $400 million to acquire Fujian Sunner Development, China's largest chicken farmer, which breeds, processes and supplies frozen and fresh chickens to consumers and corporate clients, such as KFC and McDonald's, across China.{{cite news|title=KKR to acquire China chicken developer for $400 mn|url=http://www.businesssun.com/index.php/sid/225119527|date=August 26, 2014|access-date=August 27, 2014|publisher=Business Sun}} In September 2014, the firm invested $90 million in lighting and electrics firm Savant Systems.[https://www.reuters.com/article/us-kkr-savant-idUSKBN0GY2PP20140903 KKR invests in smart home tech company Savant Systems] {{Webarchive|url=https://web.archive.org/web/20151115192144/http://www.reuters.com/article/2014/09/03/us-kkr-savant-idUSKBN0GY2PP20140903 |date=November 15, 2015 }}. Reuters, September 4, 2014 Also in 2014, KKR acquired commercial landscaping company ValleyCrest from Michael Dell's investment firm MSD Capital, and combined it with landscape company Brickman, which it had owned since 2013, to form BrightView.{{cite web|url=https://www.nurserymag.com/article/brightview-files-for-ipo/ |title=BrightView filed for an IPO May 31|website=Nursery Management| date=June 6, 2018 |access-date=December 1, 2020}}{{cite web|url=https://dealbook.nytimes.com/2013/11/11/k-k-r-to-buy-landscaping-company-brickman-for-1-6-billion/ |title=K.K.R. to Buy Landscaping Company Brickman for $1.6 Billion|website=NY Times| date=November 11, 2013 |access-date=December 1, 2020}}
In January 2015, KKR confirmed its purchase of the British rail ticket website thetrainline.com, previously owned by Exponent. The purchase sum was not disclosed.{{cite news |url=http://uk.reuters.com/article/deals-day-idUKL4N0V13NU20150122 |archive-url=https://web.archive.org/web/20160106123843/http://uk.reuters.com/article/deals-day-idUKL4N0V13NU20150122 |url-status=dead |archive-date=January 6, 2016 |title=Deals of the day - Mergers and acquisitions |work=Reuters |access-date=January 22, 2015}} On October 12, 2015, KKR announced that it had entered into definitive agreement with Allianz Capital Partners to acquire their majority stake in Selecta Group, a European vending services operator.{{cite web|title = KKR {{!}} KKR agrees to acquire majority stake in Selecta from ACP|url = http://media.kkr.com/media/media_releasedetail.cfm?ReleaseID=936091|website = media.kkr.com|access-date = October 12, 2015|archive-url = https://web.archive.org/web/20151019042943/http://media.kkr.com/media/media_releasedetail.cfm?ReleaseID=936091|archive-date = October 19, 2015|url-status = dead}}
In 2016, KKR purchased two Hispanic grocery chains, Northern California Mi Pueblo and Ontario, California–based Cardenas. In February 2016, KKR invested $75 million in commercial real estate lender A10 Capital.{{Cite news|url=https://www.pehub.com/2016/02/661114/|title=KKR invests $75 mln in A10 Capital - PE Hub|date=February 10, 2016|work=PE Hub|access-date=October 16, 2017|language=en-US}} On September 1, 2016, KKR announced that it had acquired Epicor Software Corporation, an American software company.{{cite web|title = Epicor Announces Close of KKR Acquisition and Executive Leadership Appointments to Accelerate Growth Strategy|url = http://media.kkr.com/media/media_releasedetail.cfm?ReleaseID=987475|website = media.kkr.com|access-date = September 1, 2016|archive-url = https://web.archive.org/web/20160906141629/http://media.kkr.com/media/media_releasedetail.cfm?ReleaseID=987475|archive-date = September 6, 2016|url-status = dead}} In October 2016, it was reported that KKR invested $250 million in OVH to be used for further international expansion.{{cite web|title=Klaba Family OVH, Europe No. 1 Web Host, Raises €250M from $KKR, TowerBrook|url=http://exithub.com/klaba-family-ovh-europe-no-1-web-host-raises-e250m-from-kkr-towerbrook/|website=exithub|access-date=January 14, 2017}} This funding round valued OVH at over $1 billion, making it a unicorn. In December 2016, the Lonza Group announced it would acquire Capsugel for $5.5 billion from Kohlberg Kravis Roberts.{{cite web|url=http://www.genengnews.com/gen-news-highlights/lonza-buys-capsugel-for-55b-cash/81253556|title=Lonza Buys Capsugel for $5.5B Cash - GEN Genetic Engineering & Biotechnology News - Biotech from Bench to Business - GEN|website=GEN|date=December 15, 2016|access-date=June 5, 2017}}
In February 2017, KKR was reported to be trying to take over the international market research company ARI GfK SE.[http://www.acceleratio-angebot.de/english/offer-document.php] {{Dead link|date=September 2018|bot=InternetArchiveBot|fix-attempted=yes}} In July 2017, KKR acquired WebMD Health Corp for $2.8 billion{{cite news|url=http://uk.reuters.com/article/us-webmd-m-a-kkr-idUKKBN1A915Y|archive-url=https://web.archive.org/web/20170724235645/http://uk.reuters.com/article/us-webmd-m-a-kkr-idUKKBN1A915Y|url-status=dead|archive-date=July 24, 2017|title=KKR has eye on health with WebMD, Nature's Bounty deals|first=Ankur|last=Banerjee|newspaper=Reuters|date=July 24, 2017}} and, the following month, it acquired PharMerica for $1.4 billion including debt,{{cite news|url=http://uk.reuters.com/article/us-pharmeric-m-a-kkr-idUKKBN1AI1EA|archive-url=https://web.archive.org/web/20170802163414/http://uk.reuters.com/article/us-pharmeric-m-a-kkr-idUKKBN1AI1EA|url-status=dead|archive-date=August 2, 2017|title=KKR to take PharMerica private in $1.4 billion deal|newspaper=Reuters|date=August 2, 2017}} Pepper Group for $518 million,{{cite news|url=http://uk.reuters.com/article/us-pepper-group-m-a-kkr-idUKKBN1AQ00X|archive-url=https://web.archive.org/web/20170810115940/https://uk.reuters.com/article/us-pepper-group-m-a-kkr-idUKKBN1AQ00X|url-status=dead|archive-date=August 10, 2017|title=Australia's Pepper Group accepts $518 million KKR takeover offer|newspaper=Reuters|date=August 10, 2017}} Covenant Surgical Partners,{{cite news|url=http://uk.reuters.com/article/brief-kkr-to-acquire-covenant-surgical-p-idUKASB0BDZW|archive-url=https://web.archive.org/web/20170810171558/http://uk.reuters.com/article/brief-kkr-to-acquire-covenant-surgical-p-idUKASB0BDZW|url-status=dead|archive-date=August 10, 2017|title=BRIEF-KKR to acquire Covenant Surgical Partners|newspaper=Reuters|date=August 8, 2017}} and Envision Healthcare Corporation's ambulance business (American Medical Response, Inc. (AMR)) for $2.4 billion.{{cite news|url=http://uk.reuters.com/article/us-envision-hlthcr-m-a-kkr-idUKKBN1AO14E|archive-url=https://web.archive.org/web/20170808153513/https://uk.reuters.com/article/us-envision-hlthcr-m-a-kkr-idUKKBN1AO14E|url-status=dead|archive-date=August 8, 2017|title=Envision to sell ambulance business to KKR in $2.4 billion deal|newspaper=Reuters|date=August 8, 2017}} On July 6, 2017, KKR announced it would merge Northern California Mi Pueblo and Ontario-based Cardenas Market. On September 18, 2017, Toys "R" Us, Inc. filed for Chapter 11 bankruptcy, stating the move would give it flexibility to deal with $5 billion in long-term debt, borrow $2 billion so it would be able to pay suppliers for the upcoming holiday season and invest in improving current operations.{{cite news |title= Toys R Us files for bankruptcy |first= Charisse |last= Jones |newspaper= USA Today |date= September 19, 2017 | url= https://www.usatoday.com/story/money/2017/09/19/toys-r-us-files-bankruptcy/678069001|access-date=September 19, 2017 }}{{cite news|last1=Hals|first1=Tom|last2=Rucinski|first2=Tracy|title=Toys 'R' Us seeks bankruptcy to survive retail upheaval|url=https://www.reuters.com/article/us-toys-r-us-bankruptcy-toymakers/toys-r-us-seeks-bankruptcy-to-survive-retail-upheaval-idUSKCN1BT2AV|website=Reuters.com|date=September 18, 2017|agency=Reuters|access-date=September 19, 2017}}{{cite news |last1=Bhattarai |first1=Abha |title=Toys 'R' Us files for bankruptcy amid struggle to pay down billions in debt |url=https://www.washingtonpost.com/news/business/wp/2017/09/19/toys-r-us-files-for-bankruptcy-amid-struggle-to-pay-down-billions-in-debt/ |access-date=September 19, 2017 |newspaper=Washington Post |date=September 19, 2017}}
During 2017, KKR purchased an 80 percent stake in Dixon Hospitality Group for {{AUD|190 million|link=yes}} in 2017 which turned into the company Australian Venue Co. (AVC). AVC is a food and beverage-focused operator in the Australian hospitality industry with a portfolio of 200+ venues.{{Cite web |title=KKR Acquires Australian Venue {{!}} Mergr M&A Deal Summary |url=https://mergr.com/kkr-acquires-australian-venue |access-date=March 3, 2023 |website=mergr.com}}{{Cite web |date=June 30, 2017 |title=KKR to Partner with Dixon Hospitality |url=https://www.businesswire.com/news/home/20170630005152/en/KKR-to-Partner-with-Dixon-Hospitality |access-date=March 3, 2023 |website=www.businesswire.com |language=en}}
In mid-July 2018, KKR purchased RBMedia, one of the largest independent publishers and distributors of audiobooks.{{cite web |url=https://www.publishersweekly.com/pw/by-topic/industry-news/industry-deals/article/77517-equity-firm-buys-rbmedia.html |title=Equity Firm Buys RBmedia |work=Publishers Weekly |author=Jim Milliot |date=July 16, 2018 |access-date=June 17, 2020}} On July 22, 2018, KKR & Co. announced it was taking over Taipei-based LCY Chemical Corp. in a deal valued at NT$47.8 billion ($1.56 billion US), part of a plan for more transactions involving controlling stakes in the Greater China region.{{cite news|url=https://www.bloomberg.com/news/articles/2018-07-22/kkr-led-consortium-buys-taiwan-s-lcy-chemical-for-1-56-billion|title=KKR Led Consortium Buys Taiwan's LCY Chemical for $1.56 billion|website=Bloomberg.com|date=July 22, 2018 |access-date=January 10, 2022}} In July 2018, it was announced that KKR sold Gallagher Shopping Park, West Midlands in the UK to South Korean investors, Hana for £175 million.{{cite web|url=https://www.commercialpeople.com/commercial-property-news/kkr-sells-west-midlands-retail-park-for-175m-to-korean-investors-3419/ |archive-url=https://web.archive.org/web/20180808204011/https://www.commercialpeople.com/commercial-property-news/kkr-sells-west-midlands-retail-park-for-175m-to-korean-investors-3419/ |url-status=usurped |archive-date=August 8, 2018 |title=KKR Sells West Midlands Retail Park for £175m to Korean Investors |publisher=commercialpeople.com |date=July 30, 2018}}
In February 2019, KKR acquired Brightsprings, and in a May 2022 letter from four United States Senators, Joe Bae and Scott Nutall were asked to explain the substandard care since their acquisition. KKR acquired the German media company Tele München Gruppe.{{cite web|url=https://deadline.com/2019/02/tele-munchen-gruppe-sold-investment-company-kkr-germany-1202561688|archive-url=https://web.archive.org/web/20190221171255/https://deadline.com/2019/02/tele-munchen-gruppe-sold-investment-company-kkr-germany-1202561688/|url-status=dead|archive-date=February 21, 2019|title = German Film & TV Powerhouse Tele München Gruppe Bought by Investment Firm KKR|date = February 21, 2019}} Later that month, KKR acquired German film distributor Universum Film GmbH.{{cite web|url=https://deadline.com/2019/02/universum-germany-kkr-film-distributor-vice-hateful-eight-1202564689|archive-url=https://web.archive.org/web/20190225181120/https://deadline.com/2019/02/universum-germany-kkr-film-distributor-vice-hateful-eight-1202564689/|url-status=dead|archive-date=February 25, 2019|title = KKR Continues German Spree with Acquisition of Key Film Distributor Universum|date = February 25, 2019}} In April 2019, KKR acquired German film production company Wiedemann & Berg Film Production with the latter company's television arm W&B Television remained a separate entity.{{cite web|title=KKR Buys 'Never Look Away' Producer Wiedemann & Berg Film|url=https://variety.com/2019/tv/global/kkr-never-look-away-wiedemann-berg-1203182901/|website=Variety|first=Leo|last=Barraclough|date=April 8, 2019|access-date=September 16, 2024}} Two months later in July 2019, KKR acquired the Canadian software company Corel.{{cite web|url=https://techcrunch.com/2019/07/03/kkr-corel-vector-parallels/|title=KKR confirms it has acquired Canadian software company Corel, reportedly for over $1B|website=TechCrunch|date=July 3, 2019 |language=en-US|access-date=July 3, 2019}} In August 2019, KKR acquired Arnott's, the Australian snack unit of Campbell Soup Company, for $2.2 billion.{{Cite news|url=https://www.reuters.com/article/us-campbell-soup-divestiture-kkr-idUSKCN1US0EY|title=Campbell confirms sale of Australian snacks unit Arnott's to KKR for $2.2 billion|newspaper=Reuters|date=August 2, 2019|via=www.reuters.com}} Later that month, KKR became the biggest shareholder of German media group Axel Springer, paying $3.2 billion for a 43.54% stake.{{Cite news|url=https://www.reuters.com/article/us-axel-sprngr-m-a-idUSKCN1VG1DK|title=KKR becomes Axel Springer's biggest shareholder|date=August 26, 2019|work=Reuters|access-date=September 9, 2019|language=en}} In August 2019, KKR also acquired a majority stake in German payment service provider to the e-commerce industry Heidelpay from AnaCap Financial Partners for more than €600 million.{{Cite web |title=KKR wins race to buy German payments group for €600m |url=https://www.ft.com/content/65a1b036-b698-11e9-8a88-aa6628ac896c |access-date=2024-03-24 |website=www.ft.com|date=August 4, 2019 |last1=Espinoza |first1=Javier }}{{Cite web |date=5 August 2019 |title=KKR to acquire majority stake in German fintech heidelpay from AnaCap |url=https://www.privateequitywire.co.uk/kkr-acquire-majority-stake-german-fintech-heidelpay-anacap/ |access-date=24 March 2024 |website=Private Equity Wire}}
In December 2019, KKR, together with Alberta Investment Management Corporation, acquired a 65% stake in the controversial Coastal GasLink Pipeline project from TC Energy.{{cite web|url=https://www.bnnbloomberg.ca/tc-energy-to-sell-65-stake-in-coastal-gaslink-to-kkr-aimco-1.1366943|title=AIMCo CEO has eye on Trans Mountain after GasLink deal |date=December 27, 2019|website=BNN Bloomberg|access-date=December 30, 2019}} The pipeline route crosses the territory of the Wet'suwet'en Nation, which opposes the project. Enforcement of an injunction to build through the Wet'suwet'en territory has sparked widespread protests across Canada.{{Cite web |date=2022-11-28 |title=Indigenous Resistance Against KKR's Coastal GasLink Pipeline Remains |url=https://pestakeholder.org/news/indigenous-resistance-against-kkrs-coastal-gaslink-pipeline-remains/ |access-date=2025-01-09 |website=Private Equity Stakeholder Project PESP |language=en}}
= 2020–2024 =
In the final days of 2019, KKR announced it would acquire OverDrive, Inc., a major distributor of eBooks to libraries.{{cite web | last=Enis | first=Matt | title=KKR Acquires OverDrive | work=Library Journal | date=December 26, 2019 | url=https://www.libraryjournal.com/?detailStory=KKR-Acquires-OverDrive | access-date=June 17, 2020}} The potential for consolidation with KKR subsidiary RBMedia was quickly noted in the library and publishing industry;{{cite web | title=OverDrive's New Owners: What It Means | work=American Libraries | date=December 31, 2019 | url=https://americanlibrariesmagazine.org/blogs/the-scoop/overdrives-new-owners-what-means/ | access-date=June 17, 2020}} the acquisition was finalized in June 2020.{{cite web | last=Milliot | first=Jim | title=KKR Completes OverDrive Purchase | work=Publishers Weekly | date=June 9, 2020 | url=https://www.publishersweekly.com/pw/by-topic/industry-news/industry-deals/article/83551-kkr-completes-overdrive-purchase.html | access-date=June 17, 2020}}
In March 2020, KKR announced the acquisition of Viridor from Pennon Group for £4.2 billion.{{Cite news |last=Plimmer |first=Gill |last2=Wiggins |first2=Kaye |last3=Massoudi |first3=Arash |date=2020-03-18 |title=KKR to buy recycling group Viridor in £4.2bn deal |url=https://www.ft.com/content/60ac8bbe-693a-11ea-800d-da70cff6e4d3 |access-date=2025-02-20 |work=Financial Times}}
In May 2020, KKR announced that it will be investing $750 million in cosmetics producer Coty. A separate plan was revealed in which several divisions of Coty are set to be spun out into a new company. According to the deal, KKR will own 60%, while Coty 40% of the new business.{{cite news|url=https://www.ft.com/content/2731771e-e43f-4126-87d6-eab87e4b5ec1 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/2731771e-e43f-4126-87d6-eab87e4b5ec1 |archive-date=December 10, 2022 |url-access=subscription|title= KKR to invest $750m in cosmetics maker Coty|work=Financial Times|last1=Abboud|first1=Leila|last2=Massoudi|first2=Arash|access-date=May 12, 2020}} The same month, it was announced that KKR is set to make an investment into Indian digital company Jio Platforms. It was reported that KKR was negotiating to buy a $1.5bn stake of a maximum value reach of $65bn for Jio Platforms.{{cite news|url=https://www.ft.com/content/27b2b3e6-5bb2-448c-9bf2-f7d796787bbc |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/27b2b3e6-5bb2-448c-9bf2-f7d796787bbc |archive-date=December 10, 2022 |url-access=subscription |url-status=live|title= KKR set to take stake in Reliance's Jio |work=Financial Times|last1=Raval|first1=Anjli|last2=Massoudi|first2=Arash|access-date=May 21, 2020}} In late June 2020, KKR announced it would lead a $48 million funding round for Artlist, a provider of royalty-free music, sound effects and video.{{Cite news|last=Lunden|first=Ingrid|date=June 29, 2020|title=Artlist raises $48M led by KKR for its royalty-free music, video and sound effect library|work=TechCrunch|url=https://techcrunch.com/2020/06/29/artlist-raises-48m-led-by-kkr-for-its-royalty-free-music-video-and-sound-effect-library/}} Despite the COVID-19 pandemic, the company reported a profit of $16 billion in the Q2 for 2020.{{cite news|url=https://www.ft.com/content/ad42c6d7-2960-4822-8f1b-e6d30ecf83f3 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/ad42c6d7-2960-4822-8f1b-e6d30ecf83f3 |archive-date=December 10, 2022 |url-access=subscription |url-status=live|title= KKR raises a record $16bn in second quarter |work= Financial Times| date= August 4, 2020| last=Vandevelde|first=Mark|access-date=August 4, 2020}}
In June 2020, KKR announced an agreement to acquire Roompot Group, a provider of holiday parks in Europe, from French private equity firm PAI Partners. Financial details have not been disclosed but a source familiar with the transaction said it valued the Dutch company at around 1 billion euros.{{Cite web |last=Outryve |first=Baptiste van |date=2020-06-18 |title=KKR to acquire Roompot Group from PAI Partners |url=https://news.roompot.com/kkr-to-acquire-roompot-group-from-pai-partners |access-date=2025-05-15 |website=Roompot |language=en-GB}}{{Cite news |last=Meijer |first=Bart |date=June 19, 2020 |title=KKR buys vacation parks firm Roompot in $1.1 billion deal |url=https://www.reuters.com/article/business/kkr-buys-vacation-parks-firm-roompot-in-11-billion-deal-idUSKBN23P297/ |work=Reuters}}{{Cite news |last=Wiggins |first=Kaye |date=June 18, 2020 |title=KKR to buy Dutch holiday parks group Roompot in €1bn deal |url=https://www.ft.com/content/eeff1672-d2de-4644-8b09-a39a6a049374 |work=Financial Times}}
In August 2020, it was reported that KKR was preparing to sell its Epicor Software Corp. branch. On August 31, it was officially confirmed that a group primary represented by private-equity firm Clayton, Dubilier & Rice is set to buy the branch in a deal worth $4.7 billion. The acquisition was one of the largest purchases of 2020.{{cite news|url=https://www.ft.com/content/76dbc938-ce00-4fa1-947c-731b0e35490a |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/76dbc938-ce00-4fa1-947c-731b0e35490a |archive-date=December 10, 2022 |url-access=subscription|title= KKR sells software group Epicor to CD&R in $4.7bn deal |work=Financial Times|last1=Kruppa|first1=Miles|last2=Wiggins|first2=Kaye|date=August 31, 2020|access-date=September 1, 2020}} In September 2020, KKR announced an investment of $755 million in the retail arm of India-based Reliance Industries Ltd.{{Cite news|last=Phartiyal|first=Sankalp|date=September 23, 2020|title=KKR to invest $755 million in retail arm of India's Reliance|language=en|work=Reuters|url=https://www.reuters.com/article/us-reliance-investment-retail-idUSKCN26E0D0|access-date=September 23, 2020}}
In November 2020, KKR teamed up with Rakuten to acquire 85% of Seiyu, the Japanese nationwide retail chain owned by Walmart.{{Cite news|last=Narioka|first=Peter Landers and Kosaku|date=November 16, 2020|title=Walmart Retreats Around Globe to Focus on E-Commerce|language=en-US|newspaper=Wall Street Journal|url=https://www.wsj.com/articles/walmart-retreats-around-globe-to-focus-on-e-commerce-11605518960|access-date=November 16, 2020|issn=0099-9660}}
In January 2021, KKR acquired a majority stake in the catalogue of American musician Ryan Tedder, including his band OneRepublic and the songs that he composed for other artists since 2016.{{cite web|url=https://www.musicbusinessworldwide.com/kkr-buys-majority-stake-in-ryan-tedder-catalog-marking-investment-giants-return-to-music-rights-ownership|title=KKR buys majority stake in Ryan Tedder catalog, marking investment giant's return to music rights ownership|website=Musicbusinessworldwide.com|date=January 11, 2021}}
In November 2021, KKR disposed of Audiobooks.com to streaming company Storytel for $135 million;{{cite web|url=https://www.thebookseller.com/news/storytel-extends-global-reach-audiobookcom-acquisition-1289297|title = Storytel extends into English language market with $135m Audiobooks deal |website=Thebookseller.com}} later that same month, KKR and Global Infrastructure Partners announced they would acquire CyrusOne for $15 billion.{{cite press release|url=https://finance.yahoo.com/news/cyrusone-acquired-kkr-global-infrastructure-120000380.html|title=CyrusOne to be Acquired by KKR and Global Infrastructure Partners in $15 Billion Transaction|publisher=BusinessWire|via=Yahoo! Finance|date=November 15, 2021}}
In February 2022, it was reported by Bloomberg that Saudi Arabian Public Investment Fund had purchased just over a 5% stake in Capcom and Nexon, reportedly worth US$883 million, while KKR acquired 8.5% of Nexon, the Japanese-South Korean video game company.{{Cite web|date=February 6, 2022|title=Saudi acquires 5% stake in Capcom and Nexon gaming firms worth $1bn|url=https://www.middleeastmonitor.com/20220206-saudi-acquires-5-stake-in-capcom-and-nexon-gaming-firms-worth-1bn/|access-date=February 7, 2022|website=Middle East Monitor|language=en-GB}}{{Cite web|date=January 5, 2022|title=The makers of MapleStory invest $400 million in a Russo brothers-founded company to expand to film and TV|url=https://www.theverge.com/2022/1/5/22868565/nexon-minority-investment-agbo-maplestory-russo-brothers|access-date=May 26, 2022|website=The Verge|language=en-GB}}
In April 2022, KKR announced the signing of an agreement to purchase Barracuda Networks from Thoma Bravo, which closed in August that year;{{cite news |url=https://www.reuters.com/business/exclusive-kkr-nears-4-bln-deal-buy-barracuda-networks-thoma-bravo-sources-2022-04-12/|title=KKR to buy cybersecurity firm Barracuda from Thoma Bravo in deal worth about $4 bln |date=April 12, 2022|work=Reuters |first1=Chibuike |last1=Oguh |first2=Krystal |last2=Hu}}{{cite web |url=https://www.pehub.com/kkr-completes-acquisition-of-cybersecurity-firm-barracuda/ |title=KKR completes acquisition of cybersecurity firm Barracuda |date=August 16, 2022 |website=PE Hub |first=Iris |last=Dorbian}} later that same month, KKR announced it had acquired all shares of Mitsubishi UBS Realty, a Japanese real estate asset manager.{{cite web |date=April 29, 2022 |title=KKR Completes Acquisition of Leading Japanese Real Estate Asset Manager |url=https://finance.yahoo.com/news/kkr-completes-acquisition-leading-japanese-063000615.html |access-date=April 29, 2022 |website=Private Equity Insights |language=en-US}}
In May 2022, KKR led about $200 million investment round in Semperis, a cybersecurity company focused on identity protection.{{Cite web |date=May 24, 2022 |title=KKR Leads $200+ Million Growth Investment in Enterprise Identity Protection Leader Semperis |url=https://www.businesswire.com/news/home/20220519006087/en/KKR-Leads-200-Million-Growth-Investment-in-Enterprise-Identity-Protection-Leader-Semperis |access-date=June 9, 2022 |website=www.businesswire.com |language=en}}
In June 2022, it was announced that KKR would sell Cardenas to funds affiliated with Apollo Global Management for an undisclosed amount.{{Cite web|last1=Wells|first1=Jeff |last2=Silverstein|first2=Sam|date=June 13, 2022|access-date=June 30, 2022|title=Apollo to acquire Cardenas Markets|url=https://www.grocerydive.com/news/apollo-to-acquire-cardenas-markets/625411/ |website=Grocery Dive}}
In June 2022, KKR rose to the top of Private Equity International's PEI 300 ranking for the first time, replacing Blackstone Inc. as the largest private equity firm in the world.[https://www.privateequityinternational.com/pei-300-kkr-beats-the-crowd-to-claim-pes-throne/ "PEI 300: KKR beats the crowd to claim PE's throne"]. Private Equity International, June 1, 2022.[https://www.privateequityinternational.com/pei-300/ "PEI 300"]. Private Equity International, June 1, 2022. However, in the 2023 ranking, KKR fell back to second place, behind Blackstone once more.{{Cite web |last=Farman |first=Madeleine |date=June 1, 2023 |title=Blackstone once again crowned largest private equity fundraiser in PEI 300 |url=https://www.privateequityinternational.com/blackstone-once-again-crowned-largest-private-equity-fundraiser-in-pei-300/ |access-date=June 1, 2023 |website=Private Equity International |language=en-GB}}
In July 2022, the company acquired a 25 per cent minority stake in Northumbrian Water Group, a UK water utility company, from CK Infrastructure Holdings for approximately £870 million.{{Cite web |last=Olsen |first=Robert |title=KKR To Invest $1 Billion In British Water Company Owned By Li Ka-Shing's CK Group |url=https://www.forbes.com/sites/robertolsen/2022/07/15/kkr-to-invest-1-billion-in-british-water-company-owned-by-li-ka-shings-ck-group/ |access-date=2025-04-23 |website=Forbes |language=en}}
In October 2022, KKR acquired ISO tank services provider Boasso Global from Apax Partners.{{Cite web |date=2022-10-28 |title=PE firm Apax to sell Boasso Global to KKR |url=https://www.bulktransporter.com/fleet-management/article/21253648/private-equity-firm-apax-to-sell-boasso-global-to-kkr |access-date=2023-12-31 |website=Bulk Transporter}}{{Cite web |last=Dorbian |first=Iris |date=2022-10-06 |title=KKR to acquire ISO tank services provider Boasso Global from Apax |url=https://www.pehub.com/kkr-to-acquire-iso-tank-services-provider-boasso-global-from-apax/ |access-date=2023-12-31 |website=PE Hub |language=en-US}}
In April 2023, KKR was reported to be in talks to buy a stake in PR firm FGS Global.{{cite news |last1=Jolly |first1=Jasper |title=KKR in talks to buy stake in public relations company FGS Global |url=https://www.theguardian.com/business/2023/apr/06/kkr-in-talks-to-buy-stake-in-public-relations-company-fgs-global |access-date=April 8, 2023 |work=Guardian |date=April 6, 2023}} On April 11, KKR had agreed to buy a 30% stake in FGS Global that valued the company at about $1.4 billion. As part of the deal, existing investor Golden State Capital would sell its entire stake to KKR.{{Cite news |last=Vinn |first=Milana |date=April 11, 2023 |title=KKR buys stake in communications firm FGS Global |language=en |work=Reuters |url=https://www.reuters.com/markets/deals/kkr-buys-stake-communications-firm-fgs-global-2023-04-11/ |access-date=April 11, 2023}}{{Cite web |title=KKR Invests in Leading Strategic Advisory and Communications Firm, FGS Global |url=https://media.kkr.com/news-details/?news_id=f6fd884c-e507-4228-afb4-43e53691d4db |access-date=April 11, 2023 |website=media.kkr.com}}
In August 2023, KKR agreed to buy Simon & Schuster, a Big Five publisher, from Paramount Global in an all-cash deal worth $1.6 billion. Simon & Schuster employees would receive an ownership stake in the company on completion of the acquisition.{{cite news |last=Maruf |first=Ramishah |date=August 7, 2023 |title=After trying for three years, Paramount finally unloads Simon & Schuster for $1.6 billion |url=https://www.cnn.com/2023/08/07/business/simon-schuster-kkr-paramount-buy/index.html |work=CNN Business}} The acquisition was completed on October 30, 2023.{{Cite web |last=Milliot |first=Jim |date=October 30, 2023 |title=KKR Completes Purchase of Simon & Schuster |url=https://www.publishersweekly.com/pw/by-topic/industry-news/industry-deals/article/93612-kkr-completes-purchase-of-simon-schuster.html |access-date=October 31, 2023 |website=Publishers Weekly |language=en}} In August 2023, it was reported that KKR would sell its controlling stakes in Australian Venue Co. to PAG for about {{AUD|1.4 billion}}.{{Cite web |last1=Thompson |first1=Sarah |last2=Sood |first2=Kanika |last3=Rapaport |first3=Emma |date=August 24, 2023 |title=PAG Asia pays $1.4b for KKR's Aussie pubs; lenders swarm deal |url=https://www.afr.com/street-talk/kkr-offloads-australian-venue-co-to-pag-asia-capital-for-1-4b-20230824-p5dz33 |url-access=subscription |access-date=August 25, 2023 |website=Australian Financial Review |language=en}}{{Cite news |last=Klyne |first=Sharon |date=August 25, 2023 |title=PAG Gets A$900 Million Loan to Buy Pub Operator Australian Venue |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2023-08-25/pag-gets-a-900-million-loan-to-buy-pub-operator-australian-venue |url-access=registration |access-date=August 25, 2023}}
In October 2023, KKR secured a minority stake in Catalio Capital Management, a firm specializing in the management of venture capital and medical investment funds.{{Cite news|url=https://www.wsj.com/articles/kkr-buys-minority-stake-in-life-sciences-investor-catalio-capital-e4ee84e?tpl=pe|title=KKR Buys Minority Stake in Life Sciences Investor Catalio Capital|last=Gormley|first=Brian|date=October 17, 2023|work=Wall Street Journal|access-date=January 6, 2024|language=en}}
In November 2023, KKR acquired Potter Global Technologies from Gryphon Investors.{{CN|date=June 2025}}
In January 2023, KKR invested 700 billion won in 2023 after the first purchase of 400 billion won in private equity bonds by Taeyoung Group holding company TY Holdings.{{Cite web |last=기자 |first=이충희 |title=KKR, 위기 겪는 태영에 올 7000억 투자[시그널] |url=https://n.news.naver.com/mnews/article/011/0004281013?sid=101 |access-date=2025-01-06 |website=n.news.naver.com |language=ko}}
On 26 February 2024 KKR announced that it would purchase the End-User Computing (EUC) divison of VMware, which had recently been acquired by Broadcom, in a deal worth $3.8bn.{{Cite web |title=KKR to Acquire Broadcom's End-User Computing Division |url=https://media.kkr.com/news-details/?news_id=48701629-ae4d-4d88-b1a9-90a438c6bf6c |date=2024-02-26 |publisher=KKR}} The division, renamed Omnissa, includes the VDI product Horizon and the device management suite Workspace ONE UEM (formerly AirWatch).
In March 2024, it was announced that KKR had acquired a majority stake in the US-based solar energy and energy storage developer Avantus for an undisclosed amount.{{Cite web |last=Akella |first=Surya |date=2024-03-21 |title=KKR to acquire majority stake in Avantus |url=https://www.power-technology.com/news/kkr-majority-stake-avantus/ |access-date=2024-03-21 |website=Power Technology |language=en-US}}
In April 2024, KKR acquired Indian company Healthium MedTech in an $839 million deal.{{cite web |title=KKR Acquires Healthium MedTech in $839 Million Deal, Expanding Healthcare Portfolio |url=https://www.brutimes.com/news/business/kkr-acquires-healthium-medtech-in-839-million-deal-expanding-healthcare-portfolio |website=Bru Times News |language=en}}
In June 2024, KKR retained second spot in Private Equity International's 2024 PEI 300 ranking, behind Blackstone in first place.{{Cite web |last=Beer |first=Helen de |date=2024-06-03 |title=Blackstone holds PEI 300 top spot |url=https://www.privateequityinternational.com/blackstone-holds-pei-300-top-spot/ |access-date=2024-06-04 |website=Private Equity International |language=en-GB}} KKR is expected to join the S&P 500 index in June 2024.{{Cite web |last=Carson |first=Ed |date=2024-06-09 |title=CrowdStrike, KKR, GoDaddy To Join S&P 500 In Quarterly Rebalance; Stocks Jump |url=https://www.investors.com/news/sp-500-crowdstrike-kkr-godaddy-quarterly-rebalance/ |access-date= |website=Investor's Business Daily |language=en-US}}
In June 2024 also, the acquisition of UK-based Superstruct Entertainment was announced, from Providence Equity Partners, owner of European music festivals like Wacken Open Air (Germany), Boardmasters (UK) and Zwarte Cross (The Netherlands).{{Cite news |last=Levingston |first=Ivan |date=2024-06-21 |title=KKR to buy owner of European music festivals for €1.3bn |url=https://www.ft.com/content/3263dcfa-2072-4202-bbb0-0f2c410e3c47 |access-date=2025-05-23 |work=Financial Times}} Financial terms of the transaction were not disclosed, the deal valued the group at around €1.3bn, according to sources familiar with the matter.{{Cite news |date=June 21, 2024 |title=KKR to Acquire Pan-European Live Entertainment Group Superstruct from Providence Equity Partners |url=https://finance.yahoo.com/news/kkr-acquire-pan-european-live-144500819.html}} The news caused some uproar among artists.{{Cite web |last=Canagasuriam |first=Danielle |date=2025-05-22 |title=Field Day festival issues statement amid as top acts drop out boycott shows |url=https://www.mirror.co.uk/lifestyle/going-out/field-day-festival-issues-statement-35262349 |access-date=2025-05-23 |website=Daily Mirror |language=en}}
On 23 November 2024, Sky News reported that CVC Capital Partners, TF1, RedBird Capital Partners, All3Media, Mediawan and Kohlberg Kravis Roberts had been linked to a potential takeover bid for ITV plc and a possible break-up of core assets such as ITV Studios and ITVX.{{cite news|url=https://news.sky.com/story/itv-back-in-spotlight-as-suitors-screen-potential-bids-13258866|work=Sky News|title=ITV back in spotlight as suitors screen potential bids|date=2024-11-23}}
On 19 December 2024, KKR extended its tender offer period for Fuji Soft to Jan. 9. as it battles rival U.S. private equity firm Bain Capital for control of the Japanese software maker.{{Cite web |last=MarketScreener |date=2024-12-19 |title=KKR extends tender offer period for Japan's Fuji Soft to Jan 9 - MarketScreener |url=https://www.marketscreener.com/quote/stock/KKR-CO-INC-44486777/news/KKR-extends-tender-offer-period-for-Japan-s-Fuji-Soft-to-Jan-9-48624585/ |access-date=2025-01-08 |website=www.marketscreener.com |language=en-US}}
= 2025–present =
On 17 February 2025, British healthcare property developer Assura rejected a $2 billion takeover bid from KKR and pension fund Universities Superannuation Scheme.{{Cite news |title=UK's Assura rejects $2 billion buyout bid from KKR, pension fund |url=https://www.reuters.com/markets/deals/uks-assura-rejects-2-billion-offer-kkr-pension-fund-2025-02-17/ |work=Reuters}}
On 19 February 2025, the company submitted a £4 billion equity bid to acquire a majority stake in Thames Water.{{Cite news |last=Smith |first=Robert |last2=Levingston |first2=Ivan |last3=Healy |first3=Euan |last4=Fontanella-Khan |first4=James |date=2025-02-19 |title=KKR submits £4bn bid to take majority stake in Thames Water |url=https://www.ft.com/content/88126d74-0fa1-4652-b80f-6d21928b20f1 |access-date=2025-02-20 |work=Financial Times}} On 31 March 2025, KKR was given the company's preferred bidder status, which means its bid moves to the next stage.{{Cite web |date=2025-03-31 |title=Thames Water picks US private equity firm KKR as preferred buyer |url=https://www.bbc.co.uk/news/articles/crldrylyy9do |access-date=2025-04-23 |website=BBC News |language=en-GB}} Its deal will be subject to regulatory approval. However, on 3 June 2025, KKR pulled out of the deal.{{cite news |last1=Kollewe |first1=Julia |title=Thames Water preferred bidder KKR pulls out of rescue deal |url=https://www.theguardian.com/business/2025/jun/03/thames-water-kkr-pulls-out-rescue-deal |access-date=3 June 2025 |work=Guardian}}
On 4 February 2025 KKR has raised its bid for Japan's Fuji Soft to 9,850 yen per share. They now surpass Bain Capital's December offer of 9,600 yen. This marks the continuation of their fierce bidding war for the $4 billion IT firm. Despite being rejected by the board of Fuji Soft, on their previous bid, KKR now supported by activist investors, has a 33.97% stake, and the competition has driven the share price higher. Bain, backed by Fuji Soft's founding family, has not made a formal offer yet and are waiting for KKR's bid to fail.{{Cite news |date=February 4, 2025 |title=KKR sweetens offer for Fuji Soft as bidding war with Bain goes another round |url=https://www.reuters.com/markets/deals/kkr-raise-bid-price-fuji-soft-above-bains-offer-nikkei-reports-2025-02-04/}}
In April 2025, KKR, along with Stonepeak, had its £1.6 billion bid for Assura plc, a UK-listed real estate company, accepted by the company's board.{{Cite news |last=Oliver |first=Joshua |date=2025-04-09 |title=NHS landlord agrees £1.6bn takeover by KKR consortium |url=https://www.ft.com/content/399398d4-6c4f-4693-9f7e-030082243ee5 |access-date=2025-04-23 |work=Financial Times}} The deal is subject to regulatory and shareholder approval and is expected to complete in autumn 2025.
In April 2025, KKR agreed to acquire OSTTRA, a joint venture of S&P Global and CME Group, for $3.1 billion. OSTTRA provides post-trade services across interest rate, foreign exchange, equity and credit markets.{{Cite web |date=April 14, 2025 |title=KKR signs $3.1 billion deal to buy post-trade services venture from S&P Global, CME |url=https://www.reuters.com/markets/deals/buyout-firm-kkr-buy-osttra-31-billion-deal-2025-04-14/ |url-status=live |access-date=April 23, 2025 |website=Reuters}}
In its first quarter 2025 results, the company reported an adjusted net income of US $1.03 billion, and assets under management rose 15 percent to US $664 billion.{{Cite web |last=Nishant |first=Niket |date=May 1, 2025 |title=KKR looks to deploy $116 billion cash in choppy market after profit boost |url=https://www.reuters.com/business/finance/kkrs-profit-climbs-fee-growth-insurance-unit-strength-2025-05-01/ |url-status=live |access-date=May 14, 2025 |website=Reuters}}
Controversies
= Fossil industry investment controversy =
KKR came under fire after a report, which was part of the Private Equity Climate Risks project, discovered that despite stating that it would be dedicated to pursue a climate action strategy, KKR extensively invested in fossil fuel companies which were both harming local communities and destroying the environment.{{Cite news |last1=Lakhani |first1=Nina |last2=reporter |first2=Nina Lakhani climate justice |date=2022-09-14 |title=Private equity still investing billions in dirty energy despite pledge to clean up |url=https://www.theguardian.com/business/2022/sep/14/private-equity-dirty-energy-carlyle-warburg-pincus-kkr-climate-risks-scorecard |access-date=2024-01-10 |work=The Guardian |language=en-GB |issn=0261-3077}}{{Cite web |last=Schulte |first=Erin |date=2023-09-08 |title=Private Equity Giant KKR Is Funding Environmental Racism, New Report Finds |url=https://insideclimatenews.org/news/08092023/private-equity-giant-kkr-is-funding-environmental-racism-new-report-finds/ |access-date=2024-01-10 |website=Inside Climate News |language=en-US}}
= Investment in Israel and the West Bank =
KKR being the largest stakeholder in the conglomerate that offers housing spaces in territories belonging to the State of Palestine, investor in Israeli cybersecurity companies, weapons manufacturers and companies that are dedicated to purchasing data. KKR is a major investor in Axel Springer, which owns Yad2, an Israeli classified ad site, which runs ads for developments in the occupied territories.{{Cite news |last=Burgen |first=Stephen |last2=Denton |first2=Neshy |date=2025-05-23 |title=Sónar festival hit with artist boycott over alleged links to Israel |url=https://www.theguardian.com/culture/2025/may/23/sonar-festival-artist-boycott-israel |access-date=2025-05-28 |work=The Guardian |language=en-GB |issn=0261-3077}}
With the purchase of Superstruct Entertainment in June 2024 for 1.3 billion euros, it became one of the main leisure and show providers in the world.{{Cite news |last=Kwok |first=Karen |date=2024-09-06 |title=Breakingviews - Buyout barons’ music fest punt is oddly compelling |url=https://www.reuters.com/breakingviews/buyout-barons-music-fest-punt-is-oddly-compelling-2024-09-06/ |access-date=2025-06-03 |work=Reuters |language=en}}{{Cite web |title=El fondo proisraelí KKR se hace con los grandes festivales españoles de música |url=https://www.elsaltodiario.com/economia/fondo-proisraeli-kkr-se-hace-grandes-festivales-espanoles-musica |access-date=2025-05-28 |website=www.elsaltodiario.com |language=}} When that became known, it caused controversy, especially among music festivals such as Sónar festival, Field Day, Viña Rock, Resurrection Fest, O Son do Camiño, Monegros Desert Festival, Arenal Sound Festival, Amnesia Ibiza, Granada Sound, FIB, etc and also among known event broadcasters like Boiler Room.{{Cite web |last=Howe |first=Megan |date=2025-05-16 |title=Mighty Hoopla issues statement amid KKR 'unethical investments' controversy |url=https://www.standard.co.uk/news/london/mighty-hoopla-controversy-private-equity-investors-kkr-b1228178.html |access-date=2025-05-28 |website=The Standard |language=en}}{{Cite web |title=Boiler Room issues statement concerning new owners Superstruct/KKR |url=https://mixmag.net/read/boiler-room-insists-it-is-pro-palestine-amid-concerns-around-new-owners-superstruct-kkr-news |access-date=2025-05-28 |website=Mixmag}}
Regarding Sónar festival, more than 70 artists signed an open letter stating "we oppose any affiliation between the cultural sector and entities complicit in war crimes" and rejected to act, besides, the organization also dissociated itself from KKR's investment activities. Similarly, more than 200 performers signed an open letter urging Field Day festival event organizers to cut ties with the investor firm.{{Cite web |title=Brian Eno, Ben UFO and Jyoty sign open letter calling on Field Day to distance itself from KKR |url=https://mixmag.net/read/brian-eno-ben-ufo-jyoty-sign-open-letter-calling-field-day-distance-itself-owner-kkr-news |access-date=2025-05-28 |website=Mixmag}} Boiler Room also issued a statement following pressure by artists and attendees explaning that they had no say on the acquisition by Superstruct Entertainment and reaffirmed their adherence to the BDS movement until international law and human rights are respected [by Israel].{{Cite web |date=2025-03-27 |title=Boiler Room issues statement concerning acquisition by Superstruct Entertainment and KKR |url=https://djmag.com/news/boiler-room-issues-statement-concerning-acquisition-superstruct-entertainment-and-kkr |access-date=2025-05-28 |website=DJ Mag |language=en}}
Partners
Over the years, many of KKR's original partners have departed, the most notable being co-founder Jerome Kohlberg. After a leave of absence due to illness in 1985, Kohlberg returned to find increasing differences in strategy with his partners, Kravis and Roberts.[https://query.nytimes.com/gst/fullpage.html?res=9B0DE7DF1F3CF93AA25755C0A961948260 "Buyout Pioneer Quitting Fray"]. The New York Times, June 19, 1987. In 1987, Kohlberg left KKR to found a new private equity firm, Kohlberg & Company, which resumed the investment style that Kohlberg had practiced at Bear Stearns and in KKR's earlier years, acquiring smaller, middle-market companies.[https://query.nytimes.com/gst/fullpage.html?res=950DE2D8153CF933A0575BC0A96F948260 Kohlberg In Dispute Over Firm]. The New York Times, August 30, 1989.[https://query.nytimes.com/gst/fullpage.html?res=9C0CE7DA1E3AF930A15751C0A966958260 "Kohlberg Suit Settlement"], The New York Times, February 23, 1990.
Since 1996, general partners of KKR have included Henry Kravis, George R. Roberts, Paul Raether, Robert MacDonnell, Jose Gandarillas, Michael Michelson, Saul Fox, James H. Greene, Jr., Michael Tokarz, Clifton S. Robbins, Scott Stuart, Perry Golkin and Edward Gilhuly.[https://www.sec.gov/Archives/edgar/data/873482/0000893750-96-000047.txt Duracell International Inc. SEC Form SC 13G/A ("Statement of acquisition of beneficial ownership")]; filed February 6, 1996. Among those who left were Saul Fox, Ted Ammon, Ned Gilhuly, Mike Tokarz and Scott Stuart who had been instrumental in establishing KKR's reputation and track record in the 1980s.{{cite book|author1=Baker, George|author2=Smith, George|title=The New Financial Capitalists: KKR and the Creation of Corporate Value|url=https://books.google.com/books?id=IBhiTwvj_AwC&pg=PA101|publisher=Cambridge University Press|location=New York|year=1998|isbn=978-0-521-64260-6}} KKR remains tightly controlled by Kravis and Roberts. The issue of succession has remained an important consideration for KKR's future.
- Scott C. Nuttall (born 1972) formerly headed KKR's fastest-growing department, the Global Capital and Asset Management Group. He joined KKR in November 1996 after leaving the Blackstone Group. With the support of co-founder George Roberts, Nuttall spearheaded the campaign to transform KKR from a private equity firm into an investment firm after noting lost opportunities amounting to billions of dollars that the company had had to turn down. He also has served on the board of Fiserv (a financial services firm) since it acquired, for $22 billion, in 2019, the KKR-backed First Data Corp.{{cite web|url=https://www.forbes.com/profile/scott-nuttall/#|title=Scott Nuttall profile at Forbes|website=Forbes|date=February 11, 2013}}[https://www.forbes.com/sites/halahtouryalai/2013/01/23/a-kinder-gentler-kkr-wants-a-piece-of-your-401k "A kinder, gentler KKR wants a piece of your 401K"], Forbes, January 23, 2013.[http://investing.businessweek.com/research/stocks/people/person.asp?personId=600160&ticker=KKR&previousCapId=6488495&previousTitle=South%20Texas%20Electric%20Cooperative%2C%20Inc Profile of Scott Nuttall at investing.businessweek.com], Businessweek.com, January 23, 2013. Nuttall was named co-president and co-COO, with Joseph Bae, on July 17, 2017, responsible for the day-to-day operations of the firm, concentrating on KKR's corporate and real estate credit, capital markets, hedge fund and capital raising businesses together with the firm's corporate development, balance sheet, and strategic growth initiatives.{{cite press release|title=KKR Appoints Joe Bae and Scott Nuttall as Co-Presidents and Co-Chief Operating Officers|date=July 17, 2017|url=https://media.kkr.com/news-details/?news_id=6efb939b-2139-4e7a-87c9-a3e8bb151d4d|publisher=KKR |archive-url=https://web.archive.org/web/20170807010824/http://media.kkr.com/media/media_releasedetail.cfm?ReleaseID=1033326|archive-date=August 7, 2017|url-status=live}} The New York Times called Nuttall and Joseph Bae potential successors to the firm's founders.{{cite news|last1=de la Merced|first1=Michael J.|title=Next Generation at K.K.R. Set as It Names Two Co-Presidents|url=https://www.nytimes.com/2017/07/17/business/dealbook/kkr-henry-kravis-george-roberts-succession.html|website=The New York Times|date=July 17, 2017|access-date=July 17, 2017}} In 2021, he was promoted to co-CEO. He graduated, summa cum laude, from the Wharton School of the University of Pennsylvania with a Bachelor of Science degree.
- Joseph Bae (born 1972) joined KKR from Goldman Sachs in 1996. Most recently, he was the managing partner of KKR Asia and the global head of KKR's Infrastructure and Energy Real Asset businesses. Mr. Bae has been the architect of KKR's Asian expansion since 2005. He has been named co-president and co-chief operating officer with Scott Nuttall on July 17, 2017, to be responsible for the day-to-day operations of the firm. Bae focuses on KKR's global private equity businesses as well as the Firm's real asset platforms across energy, infrastructure, and real estate private equity. In 2021, he was promoted to co-CEO. He graduated with a Bachelor of Arts degree from Harvard College.
- Alexander Navab (1965 – 2019) joined KKR from Goldman Sachs in 1993 and was the former head of Americas Private Equity.{{cite web|title=Alex Navab|url=http://www.kkr.com/our-firm/leadership/alexander-navab|website=KKR|access-date=September 17, 2017}} After spending 24 years at the firm, he stepped down as part of the Nuttall-Bae transition and would retire. In September 2017, he was elected to Columbia University's board of trustees.{{cite web|last1=Bollinger|first1=Lee C.|title=Alexander Navab and Li Lu Elected to Columbia University Board of Trustees|url=http://news.columbia.edu/content/1748|website=Columbia University|access-date=September 17, 2017}} He was born in Isfahan, Iran, but followed his family and became a refugee in Greece following the Iranian Revolution. They immigrated to the United States two years later. He received a Bachelor of Arts degree from Columbia College, Columbia University, and an MBA degree from Harvard Business School. In 2016, he was honored with Ellis Island Medal of Honor.{{cite web|title=Medalists Database|url=http://www.neco.org/medal-of-honor/medalists-database?medalist=29883|website=The National Ethnic Coalition of Organization|access-date=September 17, 2017}} He died in July 2019 at age 53.{{cite news|last1=Schatzker|first1=Erik|title=Alex Navab, ex-KKR Dealmaker Who Started Own Firm, Dies at 53|url=http://www.bloomberg.com/news/articles/2019-07-08/alex-navab-ex-kkr-dealmaker-who-started-own-firm-dies-at-53|newspaper=Bloomberg.com|date=July 8, 2019 |access-date=October 13, 2019}}
- Saul A. Fox left KKR in 1997 to found Fox Paine & Company, a middle market private equity firm with over $1.5 billion of capital under management[http://www.foxpaine.com/pdf/bigger.pdf "For Saul Fox, Bigger Isn't Always Better in the World of Buyouts"], foxpaine.com, May 15, 2000. Retrieved February 16, 2009.Anders, George. [https://www.wsj.com/articles/SB118981608237128291 "Bitter End of a Partnership"], Wall Street Journal, September 15, 2007.
- Clifton S. Robbins left KKR to join competitor General Atlantic Partners in 2000 and later founded Blue Harbour Group,[http://www.bhgrp.com/About.aspx Blue Harbour Group> About Blue Harbour] {{webarchive|url=https://web.archive.org/web/20080313093107/http://bhgrp.com/About.aspx |date=March 13, 2008 }} (company website); retrieved February 16, 2009. a private investment firm based in Greenwich, Connecticut.[http://www.efinancialnews.com/assetmanagement/pensionfunds/content/3352351815/printerfriendly Barbarians at the Gate: Contrasting fortunes for those closest to the deal]. eFinancial News, November 3, 2008; retrieved February 16, 2009.
- Edward A. Gilhuly and Scott Stuart left KKR in 2004 to launch Sageview Capital. Prior to this, Gilhuly was the managing partner of KKR's London-based European operations. Stuart had managed KKR's energy and consumer products industry groups.
- Ted Ammon, started several new ventures including Big Flower Press, which printed newspaper circulars, and Chancery Lane Capital, a boutique private equity firm, before being murdered in his Long Island home October 2001. The lover of his estranged, now deceased wife, Generosa, was later convicted.{{cite news|url=https://www.cbsnews.com/news/pelosi-found-guilty-of-murder/|title=Pelosi Found Guilty of Murder|publisher=CBS News|date=December 13, 2004|access-date=May 17, 2007}}[https://www.vanityfair.com/style/features/2002/01/ammon200201 "Murder in East Hampton"], Vanity Fair, January 2002.[https://www.nbcnews.com/id/wbna25741873 "Mystery of the Murdered Millionaire"]. Dateline NBC; retrieved February 16, 2009.
- Paul Hazen, served as chairman and CEO of Wells Fargo (1995–2001).[http://findarticles.com/p/articles/mi_m4070/is_n102/ai_17015386 Paul M. Hazen profile as Wells Fargo & Co. Chairman and CEO] {{webarchive|url=https://web.archive.org/web/20050914124603/http://www.findarticles.com/p/articles/mi_m4070/is_n102/ai_17015386 |date=September 14, 2005 }}; retrieved February 16, 2009. Hazen later returned to KKR to serve as chairman of Accel-KKR, a joint venture with Accel Partners, and later as chairman of KKR's publicly listed affiliate, KFN.
- Clive Hollick, Baron Hollick, CEO of United News and Media (1996–2005)
- Ken Mehlman joined KKR in 2008 as global head of public affairs.{{cite web|url=http://www.kkr.com/leadership/ken-mehlman|archive-url=https://web.archive.org/web/20130730162649/http://www.kkr.com/leadership/ken-mehlman|url-status=dead|title=Mehlman profile at KKR website|archive-date=July 30, 2013}}
- David Petraeus, selected to serve as chairman of the newly formed KKR Global Institute (2013—present){{cite news|url=https://www.reuters.com/article/us-kkr-petraeus-idUSBRE94T0D820130530|title=KKR names former CIA head Petraeus as chairman of new institute|date=May 30, 2013|access-date=June 5, 2017|newspaper=Reuters}}
- Joseph Grundfest, professor at Stanford Law School and youngest SEC Commissioner
- Malcolm Turnbull, former Prime Minister of Australia.{{cite news|url=https://www.theguardian.com/australia-news/2019/may/31/malcolm-turnbull-joins-global-investment-firm-kkr
|title=Malcolm Turnbull joins global investment firm KKR |date=May 31, 2019 | newspaper=The Guardian|agency=Australian Associated Press|url-status=live|archive-url=https://web.archive.org/web/20190601042739/https://www.theguardian.com/australia-news/2019/may/31/malcolm-turnbull-joins-global-investment-firm-kkr |archive-date=June 1, 2019}}
Publications about KKR
{{refbegin}}
- {{cite book | author=Anders, George | title=Merchants of Debt: KKR and the Mortgaging of American Business | publisher=BasicBooks | location=New York | year=1992 | isbn=978-0-465-04522-8 | url=https://archive.org/details/merchantsofdebtk00ande }}
- {{cite book |author1=Baker, George |author2=Smith, George | title=The New Financial Capitalists: KKR and the Creation of Corporate Value |url=https://openlibrary.org/works/OL1918054W/The_new_financial_capitalists?edition=key%3A/books/OL367480M | publisher=Cambridge University Press | location=New York | year=1998 | isbn=978-0-521-64260-6}}
- {{cite book | author=Bartlett, Sarah | title=The Money Machine: How KKR Manufactured Power & Profits | publisher=Warner Books | location=New York | year=1991 | isbn=978-0-446-51608-2 | url=https://archive.org/details/moneymachinehowk00bart }}
- {{cite book| author=Burrough, Bryan | title=Barbarians at the Gate: The Fall of RJR Nabisco |location=New York | publisher=Harper & Row | year=1990| isbn= 0-06-016172-8| title-link=Barbarians at the Gate }}
{{refend}}
Notes
{{reflist}}
References
{{refbegin}}
- [https://web.archive.org/web/20051016203114/http://news.ft.com/cms/s/1bb89590-5468-11d9-a749-00000e2511c8.html FT.com / Industries / Basic industries – "KKR set to buy Masonite for C$3.1bn"]
- Gross, Daniel & David Sterling. "[http://www.slate.com/id/2169859/ Has Henry Kravis gone soft?]". Slate, August 5, 2007; retrieved August 7, 2007.
- [https://www.bloomberg.com/news/marketsmag/kkr.pdf "The KKR Way"]. Bloomberg Markets, August 2007
- [https://web.archive.org/web/20110612111527/http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article552119.ece "The barbarians at the gate have been losing their Midas touch"]. The Times (London), August 6, 2005; retrieved February 16, 2009.
{{refend}}
External links
{{Commons category}}
- {{Official website|https://www.kkr.com}}
{{Finance links
| name = KKR & Co. Inc.
| symbol = KKR
| reuters = KKR.N
| bloomberg = KKR:US
| sec_cik = 1404912
| yahoo = KKR
| google = KKR:NYSE
}}
{{Kohlberg Kravis Roberts}}
{{Largest private equity firms}}
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{{Authority control}}
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