KKR Euronext to invest in TXU(2)

The Euronext affiliate of KKR has committed to the largest ever proposed buyout both as a co-investor and limited partner, contributing $500 million to the deal.

KKR Private Equity Investors will contribute $500 million (€378.5 million) toward the proposed $45 billion acquisition of Dallas, Texas-based utility company TXU, which is being led by private equity firms Kohlberg Kravis Roberts and Texas Pacific Group.

As a direct co-investor, the publicly traded fund will supply $300 million in capital toward the largest ever proposed buyout.

An additional $200 million will be drawn down through KKR’s current private equity fund. KKR Private Equity Investors, last year was listed on the Euronext Exchange and immediately committed nearly $2 billion as a limited partner to KKR’s current fund, targeting more than $16 billion in commitments.

Trading under the ticker symbol KPE, KKR Private Equity Investments is a $4.8 billion fund formed in April 2006 that invests primarily as a limited partner in KKR funds, and as a co-investor in KKR-backed portfolio companies. Share prices of KPE debuted at $24.80; on Friday, shares began trading at $23.99.

KKR Private Equity Investments recently committed to a $700 million investment in Sun Microsystems, the computer service company said, in the form of $350 million of convertible senior notes due in 2012 and $350 million of convertible senior notes due in 2014.

Among many other deals, the publicly traded fund has also co-invested $135 million in Capmark Financial Group, a real estate finance firm acquired by KKR, and co-invested $200 million in VNU, the Dutch media and marketing business acquired by a KKR-led consortium for €8.7 billion.