Kohlberg Kravis Roberts & Co. L.P. (KKR) is a leading global investment firm that specializes in private equity, credit, and real assets. The firm was founded in 1976 by Jerome Kohlberg, Henry Kravis, and George Roberts, who had previously worked together at the investment bank Bear Stearns. KKR is headquartered in New York City, with additional offices across the United States, Europe, Asia, and Australia.
KKR focuses on leveraging its capital base, expertise, and network to create value for its investors, portfolio companies, and the communities in which it operates. The firm is known for its pioneering role in the development of the leveraged buyout (LBO) strategy, which involves the acquisition of companies primarily using borrowed funds to finance the purchase.
Some key aspects of KKR include:
Investment Strategies: KKR employs a range of investment strategies, including private equity, credit, real estate, infrastructure, and other alternative assets. Within private equity, the firm engages in leveraged buyouts, growth equity investments, and venture capital deals. KKR's credit strategies encompass leveraged loans, high-yield bonds, distressed debt, and mezzanine capital, among others.
Industry Expertise: The firm targets investments in various industries such as consumer and retail, energy, financial services, healthcare, industrials, technology, media and telecommunications, and real estate. KKR's investment professionals have deep industry knowledge, which enables them to identify opportunities and create value for portfolio companies.
Global Reach: KKR has a broad international presence with offices in key financial centers around the world. This global footprint allows the firm to source and execute deals across different markets and regions, providing diverse investment opportunities for its clients.
Portfolio Management: Once KKR acquires a company, the firm actively engages in managing and improving its performance. KKR works closely with the management teams of its portfolio companies to develop and execute strategic plans, optimize operations, and drive growth. The goal is to maximize the value of the investment before eventually exiting, either through a public offering, a merger or acquisition, or a secondary sale.
Responsible Investment: KKR is committed to responsible investment practices and considers environmental, social, and governance (ESG) factors in its decision-making process. The firm has developed guidelines and tools to integrate ESG considerations into its investment activities and aims to create sustainable, long-term value for its investors and stakeholders.
Some of KKR's most notable transactions include the acquisitions of RJR Nabisco in 1989, TXU (now Energy Future Holdings) in 2007, and Alliance Boots in 2007. The RJR Nabisco deal, at the time, was the largest leveraged buyout in history and later became the subject of the bestselling book "Barbarians at the Gate" and an HBO movie of the same name.
In summary, Kohlberg Kravis Roberts & Co. (KKR) is a prominent global investment firm with a diverse range of investment strategies and a strong track record in private equity and credit markets.