Public Equity Activities

Although KKR’s funds have historically focused on private equity and debt investments, we have managed investments in public equity throughout our history. Initially, our public equity investments consisted of minority and structured investments in public companies that were made by our private equity funds. More recently, we formed KKR Private Equity Investors, L.P., a private equity-oriented permanent capital fund, and our two fixed income funds that have provided us with more investment flexibility than traditional private equity funds and an additional capital base for making equity investments in public companies.

Through our latest public markets initiative we hope to leverage, where appropriate, the intellectual capital developed in the course of our traditional private equity business — otherwise not used if the private equity transaction is not consummated — to make public equity investments. Typically, we invest in companies whose market prices significantly understate the quality of their assets.

During 2007, we began building out this business and hired additional investment personnel who have specialized experience in the public equity markets.

“Greater capital availability has made it possible for more Americans to pursue their dreams — of business ownership, of home ownership, of stock and bond ownership, of higher education, all of which contribute to the nation’s prosperity. And the decision to allow pension funds to invest in public markets and private equity portfolios has led to greater returns and better retirement packages for teachers, police officers, firefighters, civil servants, and millions of hard-working Americans.”

Henry R. Kravis
KKR Co-Founder