We focus on private equity and fixed income transactions. KKR has built a leading private equity business, and has significant credit experience.

KKR Business Segment Focus

Since inception in 1976, our principal growth strategy has been to expand our existing private equity businesses. We enter new markets when, and only when, they complement our core business and offer attractive opportunities to further broaden our asset and investor base. While most of our recent growth has come from our private equity and debt activities, we are selectively pursuing opportunities to expand our investment structures and products in other areas.

Currently, KKR’s business is organized into the following segments:

Private Equity
This KKR business segment comprises:

  • Traditional private equity funds that have a finite life and investment period. As a world leader in private equity, we have sponsored and managed 14 private equity funds. As of June 30, 2008, our funds had investments in 51 companies with more than $205 billion in annual revenues.
  • KKR Private Equity Investors, L.P. (Euronext Amsterdam: KPE), is a Guernsey limited partnership that seeks to create long-term value by participating in private equity and opportunistic investments selected, evaluated, structured, monitored, and exited by investment professionals at KKR.

Fixed Income
The KKR Fixed Income business segment comprises:

  • KKR Financial Holdings LLC (NYSE: KFN), a specialty finance company that primarily invests in corporate debt, including bank loans and high yield securities, along with other opportunities in public and private equity securities. As of June 30th 2008, KFN had $2 billion of assets under management.
  • KKR Strategic Capital Fund, a private companion fund to KKR Financial Holdings LLC (KFN) that invests in debt transactions.

Strategic Initiatives
We are actively pursuing strategic initiatives that include:

  • KKR Capital Markets, our NASD-registered broker-dealer, provides us with greater level of control and insight into the capital raising efforts of KKR portfolio companies and allows us to be closer to markets.
  • Public Markets Initiatives enable us to leverage our industry and company research efforts by building new businesses, and making equity investments in public companies.
  • In partnership with the Environmental Defense Fund (EDF), KKR established a first-of-its-kind Green Portfolio Project. KKR and EDF will work together to measure and improve the environmental performance of companies within KKR’s U.S. portfolio, as well as KKR itself, similar to the way KKR drives operational improvement.