KKR and Co.

#231

Rank

$67.23B

MarketCap US

US United States

Country

Summary

Kohlberg Kravis Roberts is a global alternative asset manager focusing on private equity, fixed income, and capital markets.Kohlberg Kravis Roberts is a global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its strategic partners, hedge funds. The company generates attractive investment returns for its fund investors through a patient and disciplined investmentapproach, employing world-class people, and driving growth and value creation with KKR portfolio companies. The company invests its own capital alongside the capital it manages for fund investors and delivers financing solutions and investment opportunities through its capital markets business. The firm has completed more than two-hundred-eighty private equity investments in portfolio companies with approximately $545 billion of total enterprise value as of June 30, 2017. Assets Under Management (“AUM”) and Fee Paying Assets Under Management (“FPAUM”) were $153 billion and $114 billion, respectively as of September 30, 2017.Jerome Kohlberg, Jr. and cousins Henry Kravis and George R. Roberts, all of whom had previously worked together at Bear Stearns, where the three completed some of the leveraged buyout transactions founded the company. Kohlberg Kravis Roberts has completed a number of transactions including the 1989 leveraged buyout of RJR Nabisco, which was a large buyout in history to that point, as well as the 2007 buyout of TXU, which is currently also a large buyout completed to date since its founding.Kohlberg Kravis Roberts has offices in 21 cities in 16 countries across 5 continents. The firm is currently headquartered in the Solow Building, New York, but in October 2015, the firm announced its intentions to occupy a newly constructed 30 Hudson Yards.In October 2009, Kohlberg Kravis Roberts 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. Kohlberg Kravis Roberts filed to list its shares on the New York Stock Exchange (NYSE) in March 2010, with trading commencing four months later, on July 15, 2010.It was founded on 1976 and is headquartered in New York.


History

1976: By 1976, tensions had built up between Bear Stearns and Kohlberg, Kravis and Roberts, which led to the formation of Kohlberg Kravis Roberts & Co. The new KKR completed its first buyout, of manufacturer A.J. Industries, in 1976.

1977: In 1977 KKR bought three companies, but investors were hard to find and the firm made no deals the next year.

1978: 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.

1979: In 1979, the firm staged the first large public-to-private transaction. KKR completed the public-to-private buyout of Houdaille Industries in 1979.

1980: By the fall of 1980 the firm had paid nearly $800 million to acquire seven companies with combined annual sales totaling about $1.3 billion.

1981: 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.

1982: 1982: The first equity capital fund is raised.

1983: By 1983 KKR was claiming an average annual return of 63 percent to its equity partners.

1984: After spending 1984 recovering from a serious illness, he returned to find that he was not needed or wanted by his younger partners.

1985: In 1985 the firm acquired Storer Communications for a record $2.5 billion.

1987: 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.

1988: When Storer was sold in 1988, KKR's partners achieved an annual return of around 50 percent. Under Kravis and Roberts, the firm was responsible for the 1988 leveraged buyout of RJR Nabisco.

1989: 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.

1990: 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.

1991: A similar transaction was KKR's 1991 injection of $283 million into Fleet/Norstar Financial Group for the purchase of the assets of the failed Bank of New England.

1992: According to KKR, when the final returns from this deal were realized in 1992, limited partners enjoyed an annual return of 43 percent. KKR completed the 1992 buyout of American Re Corporation from Aetna as well as a 47% interest in TW Corporation, later known as The Flagstar Companies and owner of Denny's in 1992.

1994: 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.

1995: In 1995 KKR traded its remaining stake in RJR for ownership of Borden Inc.

1996: 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.

1998: In January 1998, KKR and Hicks, Muse, Tate & Furst agreed to the $1.5 billion buyouts of Regal Entertainment Group.

1999: Nabisco and Reynolds became independent with the 1999 spin-off of R.J. Reynolds shares.

2000: 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.

2001: In 2001, however, it had to write off its barely two-year-old, $210 million investment in Birch Telecom Inc.

2002: 2002: Legrand SA is acquired. KKR was able to realize its investment in Shoppers Drug Mart through a 2002 IPO and subsequent public stock offerings.

2003: KKR looked forward to completing a $610 million purchase of International Transmission Co., an electricity transmission company, in the first quarter of 2003.

2004: In July 2004, KKR agreed to sell its stock in Borden Chemical to Apollo Management for $1.2 billion. But once it started facing flat sales and falling profits, the Toys R Us board of directors put the company up for sale in 2004.

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.

2006: 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.

2008: The following year, in July 2008, KKR announced a new plan to list its shares.

2009: KKR has announced that it expects to close the transaction in 2009.

2010: In October 2010, KKR acquired about nine members of Goldman Sachs Group proprietary trading team after entertaining offers from investment firms such as Perella Weinberg and Blackrock.

2011: 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.

2013: In March 2013, KKR exited its joint venture in music company BMG Rights Management, selling its 51% stake to Bertelsmann.

2014: In September 2014, the firm invested $90 million in a lighting and electrics firm Savant Systems.

2015: In January 2015, KKR confirmed its purchase of the British rail ticket website thetrainline.com, previously owned by Exponent. 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.

2016: In October 2016, it was reported that KKR invested $250 million in OVH to be used for further international expansion. In December 2016, the Lonza Group announced it would acquire Capsugel for $5.5 billion from Kohlberg Kravis Roberts.

2017: On July 6, 2017, KKR announced it would merge Northern California Mi Pueblo and Ontario-based Cardenas Market. Eventually, the toy company filed for Chapter 11 bankruptcy in 2017.

2018: 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.

2019: In February 2019, KKR acquired the German media company Tele München Gruppe.

2020: In May 2020, KKR announced that it will be investing $750 million in cosmetics producer Coty, Inc. Despite the COVID-19 pandemic, the company reported a profit of $16 billion in the Q2 for 2020. The acquisition was one of the largest purchases of 2020.

2021: In November 2021, KKR disposed of Audiobooks.com to streaming company Storytel for $135 million; later that same month, KKR and Global Infrastructure Partners announced they would acquire CyrusOne for $15 billion.


Mission

We seek to provide innovative financial solutions and investment vehicles to help our fund investors achieve their investment goals. With offices around the world, we fulfill our mission one investor at a time, one company at a time—and we do this as one global firm.


Key Team

Jerome Kohlberg Jr. (Founder)

Joseph Yong Bum Bae (Co-CEO)

Joseph Alexander Grundfest (Board Member)

Robert W. Scully (Board Member)

Xavier Bruno Niel (Board Member)

John B. Hess (Board Member)

Patricia Fiorello Russo (Board Member)

Thomas M. Schoewe (Board Member)

Adriane M. Brown (Board Member)


References
KKR and Co.
Leadership team

Henry R. Kravis (Co-Executive Chairman)

George Rosenberg Roberts (Co-Executive Chairman)

Products/ Services
Management buyouts, Leveraged finance, Venture capital, Growth capital
Number of Employees
1,000 - 20,000
Headquarters
30HudsonYardsNewYorkCity,NewYork,U.S.
Established
1976
Company Registration
SEC CIK number: 0001404912
Net Income
1B - 20B
Revenue
Above - 1B
Traded as
KKR
Social Media
Fri Mar 01 2024
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