The Wall Street Journal and New York Times report Kohlberg Kravis Roberts & Co. [KKR] is now planning its own IPO, after closely following the IPO of rival Blackstone Group, which priced at the top of its range at $31/share, raising $4.13b, and begins trading Friday. Strong investor interest in Blackstone, despite adverse tax-related implications, among other matters, has prompted KKR to pursue a public listing, according to unnamed sources. Still, KKR chief Henry Kravis is upset by a recent Congressional ruling that exempted Blackstone for five years from higher taxes to be levied on partnerships that go public, a priviledge future candidates like KKR would not receive. Sources say KKR has retained investment banks including Morgan Stanley, and could file a prospectus within the next month. In addition to KKR, private equity firms including Carlyle Group, TPG and Apollo Management, are all said to be considering a public listing. Private equity firm Fortress Investment Group has gained 40% since its IPO in February.
Sources: New York Times, Wall Street Journal
Commentary: Blackstone IPO: $31/Share, Upper-End of Guidance • Blackstone Group IPO to Take Wall Street By Storm • Why Are Lawmakers Afraid of the Blackstone IPO?
Stocks/ETFs to watch: Fortress Investment Group LLC (FIG), Blackstone Group LP (BX), Morgan Stanley (MS)
Related: KKR website, KKR Investments
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.