KKR to go public

Kohlberg Kravis Roberts, a US-based private equity firm, is to go public on the New York Stock Exchange via a takeover of its Amsterdam-listed fund KKR Private Equity Investors.

KKR had, at one point, been expected to follow rival buyout giant The Blackstone Company into floating its management company, with expectations of a US$1.25bn initial public offering. However, the dislocation in the credit markets and Blackstone’s plummeting share price had appeared to have ended those plans.

Partners at KKR are expected to hold 79% of the combined company, while KKR Private Equity’s shareholders will own the remaining 21%. The transaction, expected to close in the fourth quarter, will not involve cash.

The listed fund has an approximate market cap of US$2.15bn, giving the combined business a total value of US$10.25bn.

The KKR Private Equity Investors fund will be de-listed once the transaction is completed.