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Report: KKR listed vehicle raises $5bn

KKR Private Equity Investor, the New York-based buyout firm’s listed vehicle due to IPO on Amsterdam’s Euronext this week, has raised more than three times its target, according to a report.

Kohlberg Kravis Roberts (KKR) is understood to have raised $5 billion (€3.95 billion) for the flotation of investment vehicle KKR Private Equity Investor, according to a report.
 
Today’s Financial Times said the flotation, which is being run by Citigroup, Goldman Sachs and Morgan Stanley, has raised $5 billion – more than three times its original target. The vehicle is due to be priced today and will begin trading tomorrow.
 
KKR announced in mid-April that it was planning to raise up to $1.5 billion from an IPO on Amsterdam’s Euronext exchange.
 
KKR was not immediately available for comment on the report.
 
According to the FT, London-based buyout firm Cinven and Apollo Management of the US – which successfully listed a $930 million business development company (BDC) in April 2004 – are also considering pubic listings of private equity vehicles.
 
Nick Ferguson, CEO of London-listed SVG Capital, which invests in Permira’s funds, told PEO recently that “it is inevitable that there will be more listings. There are no new defined benefit pension funds being started, and sales of life insurance aren’t growing, and those are two major sources of supply for private equity. I believe we can expect another listing from one of the top ten buyout firms in the next twelve months”.
 
KKR Private Equity Investor will allow the public markets to invest in private equity in a liquid fashion without having to invest at least £25 million, the current minimum placement for a KKR buyout fund.
 
For KKR, having a listed vehicle will provide an evergreen source of capital, allowing the firm to redeploy profits without having to raise new funds.