The Washington State Investment Board last month indicated it would not buy a stake in Kohlberg Kravis Roberts & Co.
The news follows reports in October that both the Washington State Investment Board and the Oregon Investment Council, which each manage roughly $40 billion and $48 billion in assets respectively, were in talks to buy a minority interest in the firm. There have also been reports that the negotiations between KKR and the Oregon Investment Council have stalled as well.
The two limited partners have a long history of investing with KKR. Washington State’s $1.5 billion investment in KKR’s Millennium Fund stands as the largest single stake ever committed to a buyout fund. The news that the two groups have pulled out of the talks has led to speculation that KKR will approach other institutions about a similar deal. Originally, reports had indicated that the two state investment groups were discussing an investment of up to $1 billion.
KKR declined comment.