Kohlberg Kravis Roberts is reevaluating its plan to buy out its publicly listed affiliate KKR Private Equity Investors (KPE).
Amsterdam-listed KPE reported a 32 percent decline in its assets and a drop in net asset value from $24.36 per share in 2007 to $12.78 in 2008. The total value of KPE’s portfolio of private equity investments is about $3 billion, down about 50 percent from 2007.
KKR announced in 2008 that it was delaying its IPO until 2009. The IPO process would involve KKR de-listing the firm from the Euronext and buying KPE, and subsequently re-listing the combined entities on the New York Stock Exchange. However, a report in today’s Wall Street Journal cited people close to KKR as saying that the firm had decided to abandon plans for the NYSE listing
The firm wrote down several investments, including a decrease of $164 million in First Data; a decrease of $128.2 million in Alliance Boots and a decrease of $121.2 million in HCA. Other write-downs included NXP, Energy Future Holdings and Capmark Financial Group.
.KKR took KPE public in 2006 for $5 billion, with about $2 billion earmarked for the mega-firm’s 2006 buyout fund, which closed on $17.6 billion.
The firm’s other publicly listed affiliate, KKR Financial, also reported a steep loss of $1.1 billion Monday for the full-year 2008. The company, which invests in debt, said it would suspend its dividend through 2009.