KKR hopes to raise $500m in NYSE offering

In addition to registering some $2.2bn in shares in New York, the alternatives giant will sell additional shares to the public as it expands and diversifies its franchise.

Kohlberg Kravis Roberts’ long-running plan to list on the New York Stock Exchange has taken another step forward. The private equity and alternatives giant today update its filings with the US Securities and Exchange Commission to offer shares on the exchange under the symbol “KKR”.

KKR & Co. revealed today that it will sell common shares valued at a maximum of $500 million. The disclosure comes after KKR previously revealed it would register 204.9 million shares valued at about $2.21 billion and representing 30 percent of the firm. 

The firm has not yet disclosed how many shares it will sell or a price target.

KKR, which already registered on the Amsterdam-based Euronext exchange last year, will allow its Guernsey shareholders to swap their holdings for units in the US-based firm. KKR’s principals with ownership stakes will continue to hold 70 percent of the firm.

Ahead of its own planned listing on NYSE, KKR has been expanding into several separate businesses areas. The firm, which ranks number three in Private Equity International’s PEI 300, a ranking of the world’s largest private equity firms, has historically pursued various strategies using capital from its main private equity funds, but has in recent years been moving toward separate funds for different strategies.

KKR is raising an infrastructure fund, and has also created a separate distressed investing team that will focus on distressed debt, bankruptcy loans and rescue financing. The firm also has been targeting between $1 billion and $3 billion for a mezzanine fund, which will invest globally in larger companies through senior notes, subordinated debt and preferred stocks.

Last month George Roberts, who along with Henry Kravis co-founded the firm, told the Washington State Investment Board that the growth of his firm was only just beginning.

“Right now you’re probably in the second inning of a baseball game, and many of the pundits are calling the game already. That’s far from what’s really here,” he said.

According to the most recent filing, KKR has some $13.4 billion in undrawn capital commitments in its private equity programme. This includes “dry powder” from funds targeting the US, Asia and Europe, as well as a recently closed “annex” fund to support fully invested funds.