Our Investment Approach
While we have completed buyout transactions that are among the most complex in history, our investment approach is fundamentally simple. We acquire industry-leading companies and work with management to grow them into thriving, sustainable enterprises — thereby creating shareholder value. We partner with highly motivated management teams to design and implement strategic and operational changes with the objective of taking these businesses to the next level of growth and beyond. And we align our interests with other stakeholders by putting our own capital at risk.
In general, the companies we acquire are at a transition point in their development, and we act as ‘agents of change’ for those businesses. KKR acquisitions can take many forms. We have taken publicly listed companies private, acquired divisional assets through corporate divestiture transactions, partnered with family-owned businesses and strategic buyers, and purchased and grown companies through industry-consolidation strategies.
Key Differentiators—Sourcing Advantage and Value Creation
What differentiates our approach from other alternative asset managers?
Sourcing Advantages
Our internal deal generation strategies and our global network of business relationships provide us with an important source of proprietary investments—and give us an advantage in sourcing investments in large global companies.
These include chemicals, consumer products, education, energy, financial services, health care, hotels/leisure, manufacturing, media, recycling, retail, technology, telecommunications, and transportation. The professionals in each of these groups have developed their own expertise as well as a network of industry experts with in-depth understanding of their particular industry’s economic drivers, risks, and opportunities for value creation.
Throughout our 30+-year history, we have focused on cultivating relationships with key decision-makers at major companies throughout the world, which often provides us with direct investment opportunities. We estimate that we have direct relationships with the chief executive officers or members of the boards of directors of nearly two-thirds of the companies in the S&P 500 and the S&P Global 100.
We have cultivated deep relationships with major investment banking firms, other financial intermediaries over the years, and government institutions — and we believe that we are often one of the first parties considered for potential investments.
Value Creation
We approach the management of our investments with the goal of creating long-term value.
KKR investment professionals are continually looking for ways to improve our portfolio companies. As experienced business professionals including former CEOs, CFOs, and managers of companies in a wide range of industry sectors, they bring invaluable expertise to our portfolio companies.
KKR Capstone further strengthens operations in our portfolio companies. This team of operational consultants works exclusively for our investment professionals and portfolio companies.
To complement the expertise of our investment professionals and operational executives, we have retained a team of senior advisors, some of whom have held leading positions in major corporations and public agencies worldwide. Our senior advisors provide us with additional operational and strategic insights, serve on the boards of our portfolio companies, help us evaluate individual investment opportunities, and assist our portfolio companies with operational matters.
Before we invest in a company, our investment professionals identify the measures we will take to create new value for stakeholders. Because we believe that value creation must begin from the first day of an investment, our investment professionals and KKR Capstone prepare "100-Day Plans" for investments that detail specific changes our portfolio company managers, investment professionals, and operational executives will implement during the first 100 days following our investment. The ultimate goal is to drive value creation.
Fast Facts on KKR Approach
Sourcing advantages:
- Industry team focus
- Direct contacts with business leaders
- Strong relationships with financial and government leaders
Value creation advantages:
- Operationally focused investment professionals
- The reputation of KKR Capstone consultants and Senior Advisors
- Disciplined value-creation process, with 100-day plans for investments, detailing specific changes to drive value creation
“KKR is particularly effective in growing businesses with real potential and revitalizing companies facing change or transition because our focus is on long-term value creation, not short term gain. In today’s economy, this approach is particularly important.”
Henry R. Kravis
Co-Founding Member, KKR


