As the representative of the company said the money will be used for expanding the related businesses. The company founders Henry Kravis and George Roberts are not going to sell their stakes for that purpose.
Kohlberg Kravis Roberts & Co, which owns 40 companies with 560,000 employees, has completed buyout deals during last year which totaled to $200 billion. The company has two competitor firms Blackstone and Carlyle Group, which completed only half of the Kohlberg Kravis Roberts & Co’s deal together.
Kohlberg Kravis Roberts & Co has a record number of takeover companies.
``Fund-raising is a time drain,'' said Paul Schaye, managing director of New York-based Chestnut Hill Partners, ``this means they don't have to go back to the market so much.''
Concerning net income of Kohlberg Kravis Roberts & Co it went up by 12 percent last year and reached $1.11 billion. KKR market value is about $15.8 billion.
Kohlberg Kravis Roberts & Co has not mention the price of the shares that it is going to sell. It is unknown how many shares the company prepares to sell.
Kohlberg Kravis Roberts & Co will change its name to KKR & Co. LP and its symbol on the New York Stock Exchange will be KKR.
Kohlberg Kravis Roberts & Co invests large funds in leveraged buyouts. The company has total $53.4 billion funds and the leveraged buyouts comprise about 83 percent of those funds. It is a high showing comparing with the other firms. Blackstone’s has about $88.4 billion funds and its leveraged buyouts comprise only 37 percent. The latter has generated 41 percent growth of its funds during the last six year period compared to KKR’s 21 percent, which was generated during last 5 years period. Thgis numbers show that strategic planning of KKR is weaker that that of Blackstone's.
According to the filing, making it KKR's best-returning pool the firm's Millennium Fund, which was closed in 2002, has delivered a net internal rate of return of 41 percent to investors.
KKR plans to make the largest leveraged buyouts this year. This includes takeover of the Dallas based electricity producer TXU Corp. for $45 billion and also purchase of payments processor First Data Corp. in Greenwood Village, Colorado for $25.6 billion.
``There are some difficulties beginning to emerge in the debt markets,'' Jon Moulton, who runs London-based private equity firm Alchemy Partners, said yesterday at a meeting with a committee of the U.K. Parliament. ``At some stage no one will be willing to underwrite fresh debt.''
According to the company web site Kohlberg Kravis Roberts & Co was established in 1976 and led by co-founding members Henry Kravis and George Roberts, KKR has completed more than 150 transactions with an aggregate enterprise value of over $279 billion.
KKR, one of the world’s largest and most successful private equity firms, has completed buyout transactions that are among the most complex in history. The firm’s investment approach, however, is fundamentally simple: KKR acquires industry-leading companies and works with management to grow and improve them and thereby create shareholder value. –Alla Harutyunyan for HULIQ.COM
