A HISTORY OF

What is KKR?
 KKR & Co. L.P (Kohlberg, Kravis and
Roberts) is a multinational private
equity firm founded in America by
Jerome Kohlberg Jr., Henry R. Kravis
and George R. Roberts in 1976.

 They are pioneers in the leveraged

buyout strategy, which they famously
used to buyout RJR Nabisco in 1988.

 Their total assets are estimated to be

worth roughly $40.3 billion as of 2011.
What is private equity?
 The keyword is “private”. Private
equity is a class of financial assets
made of stocks and debts from
companies that aren’t publicly
traded.

 Private equity companies provide

a source of capital and investment
for companies that cannot or will
not go public.

 A common strategy in private

equity is a leveraged buyout, in
which a private equity firm buys
majority control of another firm.
How does KKR operate?
 KKR’s staff consists of roughly 140 investment
professionals and 400 total employees
organized into 9 industry-focused groups.

 Chemicals
 Consumer Products
 Energy & Natural Resources
 Financial Services
 Health Care
 Industrial
 Media and Communications
 Retail
 Technology

 These groups typically conduct private

equity leveraged buyout investments in their
respective industries. Members of each
group are expected to have professional
knowledge of their respective industries.
The Beginnings of KKR
 Jerome Kohlberg, Henry R Kravis and
George Roberts worked at Bear
Stearns in the 60’s and 70’s.

 Their acquisition of Orkin Exterminating

Company is one of the first major
leveraged buyouts.

 In 1976, tensions between Bear Stearns

executive Cy Lewis and the three
founders led to a split and the
creation of KKR.
From left: Founders Henry R Kravis, Jerome
 By 1980, KKR was one of the most Kohlberg and George R Roberts
prominent specialists of leveraged
buyouts and would be well positioned
for the buyout boom of the 1980’s.
The Buyout Boom
 KKR went on to make numerous
major acquisitions during the
1980’s buyout boom.

 The Buyout Boom of the 1980s was

a string of estimated 2,000
leveraged buyouts worth $250
million or more between 1979 and
1989.

 Notable acquisitions by KKR

include Beatrice ($6.1 billion) and
Safeway ($5.5 billion)
Initial Public Offering
 KKR filed for an IPO with the SEC in
2007, hot on the heels of rival
Blackstone Group’s own IPO less than
two weeks earlier. However, poor
conditions in the IPO market resulted
in the flotation being aborted.

 KKR announced in alternative plan to

distribute shares in 2009, involving a
reverse takeover of their affiliate KKR
Henry R Kravis at the World Economic Forum
Private Equity Investors. in 2009

 KKR’s public listing on the NYSE

officially opened in 2010.
Today
 KKR remains largely unchanged and continues to
successfully implement leveraged buyout strategies as
the economy recovers.

 In 1996, KKR was able to complete the bulk of

fundraising for what was then a record $6 billion private
equity fund, the KKR 1996 Fund.

 They executed a $44 billion takeover of TXU (a Texas

energy company) in 2007, which to date has proven to
be the largest buyout completed to date.

 They recently finished a $2 billion energy fund in 2014 in

order to capitalize on the North American energy boom.
KKR Green Portfolio
 In 2008, KKR launched their Green
Portfolio, a project applying KKR’s
performance analysis skills to
measuring and mitigating the
environmental footprint of
participating companies.

 The project came about as a direct

result of the TXU acquisition and
represents the first collaborative
effort between environmentalists
and investors.

 As of the latest data taken in 2012,

the Green Portfolio is estimated to
have had a $917 million impact on
avoided waste and water use over
19 companies.
Notable past and current
employees
 Original founder Jerome Kohlberg left the company in
1987 due to strategy differences. He founded a new
private equity firm Kohlberg & Co.

 Founders Henry R Kravis and George R Roberts remain

at the head of KKR.

 Former Republican National Committee Chairman Ken

Mehlman joined KKR as the Global Head of Public
Affairs in 2008.

 Scott Nuttall heads the Global Capital Asset and

Management Group, KKR’s fastest growing
department.

 Former US Army general and CIA director David Former general David Petraeus announces
Petraeus joined KKR in 2013 to serve as the chairman of his employment at KKR
the Global Institute.

 Alex Navab is the co-head of KKR’s Americas Private

Equity business and the head of the Media and
Communications team in the US.