KKR/Fidelity IPO Deal Not for The Great Unwashed
Avago Technologies is set to price its IPO tomorrow night, in what will be the first test of KKR’s recent agreement with Fidelity Investments. For the uninitiated, here is how KKR described the program last month: Through the new relationship, Fidelity will have exclusive access to retail securities that are allocated to KKR in all U.S. public offerings in which KKR participates as an underwriter, including IPOs and follow-on offerings. Those retail securities will be made available to Fidelity's retail brokerage customers as well as to accounts managed by Fidelity's registered investment advisor (RIA), correspondent broker-dealer and other institutional clients. KKR will act as the underwriter of all retail securities that are distributed by Fidelity under the arrangement. I happen to be a Fidelity retail brokerage customer, so decided to ring up customer service in order to divine some more info about the offering. What I learned, however, was that this agreement is only for certain Fidelity brokerage customers. Specifically, you need to have
