• Mon, Apr. 25, 6:33 AM
    • KKR (NYSE:KKR): Q1 EPS of -$0.65 misses by $0.32.
    • Revenue of $279.92M (-4.9% Y/Y) beats by $3.02M.
    • Press Release
    | Mon, Apr. 25, 6:33 AM | 1 Comment
  • Sun, Apr. 24, 5:30 PM
    | Sun, Apr. 24, 5:30 PM | 7 Comments
  • Fri, Apr. 15, 12:57 PM
    • With banks sidelined by new regulations, KKR took the lead in arranging a $325M dividend recapitalization for insurance claims services provider Sedgwick Claims Management.
    • It's the first such deal this year.
    • A bull market animal, dividend recaps - like a cash-out mortgage refinance - are a way in which private-equity owners of companies can get back some, all, or more of the equity they put into the firms. It does, of course, saddle the companies with a sizable debt load.
    • B3-rated Sedgwick has leverage of 7-7.5x, says Moody's, making it difficult for banks to underwrite, given leveraged lending guidelines closer to 6x.
    • Now read: An In-Depth Look At KKR And How The Market Is Mispricing It
    | Fri, Apr. 15, 12:57 PM | 3 Comments
  • Tue, Apr. 5, 11:49 AM
    • With what may turn out to be good timing, KKR has exceeded its $3B target for its second special-situations fund.
    • “The U.S. is, we think, in the late stages of a credit cycle,” says fund co-head Jamie Weinstein. "We’ve had a very significant boom in credit assets ... As you come to the end of that cycle, you see a rise in defaults.”
    • KKR's began selling this fund in 2014 after its first special-situations vehicle - with $2B - put money to work quicker than expected. Unlike the first fund which invested mostly in Europe, this new one will focus on U.S. companies. The first fund is averaging a 7% annualized return as of Dec. 31 - that's down from 15% a year earlier.
    • Weinstein notes energy companies still aren't looking for private-fund money. That trigger will come, he says, when their hedges end, their bank credit lines shrink, and they run out of cash.
    | Tue, Apr. 5, 11:49 AM | 1 Comment
  • Fri, Mar. 18, 4:10 PM
    • P-E firm KKR agrees to acquire Airbus' (OTCPK:EADSF, OTCPK:EADSY) defense electronics business for €1.1B ($1.2B), with the European aerospace firm possibly keeping a minority stake in the division during the transition period.
    • Airbus is shedding several areas to focus its defense division on missiles, warplanes, launchers and satellites.
    • The deal went ahead after Airbus excluded its border security business from the planned sale, having missed its goal of reaching a deal by early 2016 because of delays with a border project in Saudi Arabia.
    | Fri, Mar. 18, 4:10 PM | 3 Comments
  • Tue, Mar. 15, 11:56 AM
    • Private-equity based asset managers have the best businesses model he's seen in thirty years of covering financial stocks, says analyst Chris Kotowski. Yet the shares "languish" at less that 7x 2017 cash distributable earnings estimates.
    • Over the last five years, alternative asset managers have grown AUM by an average 14.5% annually, roughly double that of traditional asset managers. On revenue, alternatives have averaged 16.2% growth vs. 5.5% for traditional players.
    • Kotowski and team calculate fair value for Blackstone (BX -2.5%) at $32, roughly 20% upside; Carlyle Group (CG -1.7%) at $31, about a double; KKR (KKR -1.3%) at $23, or 70% upside.
    • ETFs: PSP, PEX
    | Tue, Mar. 15, 11:56 AM | 29 Comments
  • Sun, Mar. 13, 5:37 AM
    • Private equity firm Apollo Global Management (NYSE:APO) is nearing a deal to acquire The Fresh Market Inc (NASDAQ:TFM) for $28.50 per share in cash, or more than $1.3B, in a move that could derail bids from Kroger (NYSE:KR), KKR, and TPG Capital.
    • Sources told Reuters that an agreement could be announced as early as Monday, but cautioned that a deal had not yet been finalized and was still possible to be amended or fall apart at the last minute.
    | Sun, Mar. 13, 5:37 AM | 18 Comments
  • Wed, Mar. 9, 2:58 PM
    • Colonial Pipeline’s unwillingness to expand its pipelines that run between Texas and New Jersey is raising the cost of fuel, companies told the FERC at a meeting held to discuss Colonial's proposal to change the rules on its pipeline.
    • Colonial’s 5,500-mile pipeline system, an essential energy transportation artery to the U.S. northeast, has been full since 2012, so some longtime shippers do not get as much space to ship fuel as they need.
    • Marathon Petroleum (NYSE:MPC) and American Airlines (NASDAQ:AAL) said at the meeting they have to buy fuel on the east coast because they cannot ship enough fuel on the pipeline.
    • Gas station operators Sunoco (NYSE:SUN) and Murphy USA (NYSE:MUSA) told the commission they pay other companies for additional pipeline space.
    • The pipeline is owned by Koch Industries, South Korea’s National Pension Service, KKR, Royal Dutch Shell (RDS.A, RDS.B) and others.
    | Wed, Mar. 9, 2:58 PM | 19 Comments
  • Fri, Mar. 4, 1:41 PM
    • Thomson Reuters (TRI +0.5%) is apparently open to selling off its Intellectual Property & Science business in parts rather than all at once, a move that could speed divestitures and raise it more than $3B.
    • The deal is likely to attract bids from private-equity firms, Bloomberg says -- including KKR (KKR +3.2%), Advent International, BC Partners and Cinven, along with corporate bidders.
    • Thomson Reuters would prefer to sell it as a whole, but could independently sell scientific and scholarly research, life sciences, and intellectual property, sources told Reuters' news division. Proceeds could be used to buy back shares, as CEO Jim Smith said he has no plans for major acquisitions this year.
    • An auction is set to kick off later this month. The company had said in November it was exploring strategic options for the unit, which employs about 3,200 and had revenue of about $1B in 2014.
    • Previously: Thomson Reuters exploring options for $1B IP & Science business (Nov. 11 2015)
    | Fri, Mar. 4, 1:41 PM
  • Mon, Feb. 29, 5:11 AM
    • Looking to bolster its finances as it grapples with the fallout from a damaging accounting scandal, Toshiba (OTCPK:TOSYY) is planning to sell its entire medical equipment unit rather than just a controlling stake, Reuters reports.
    • Aggressive offers from KKR, Canon (NYSE:CAJ), Fujifilm (OTCPK:FUJIY) and Konica Minolta (OTCPK:KNCAY), could value the business at much more than initial estimates of $3.5B.
    • The deadline for the second round of bidding is Friday.
    | Mon, Feb. 29, 5:11 AM | 2 Comments
  • Wed, Feb. 17, 9:52 AM
    • While both stock's are lower by about 45% since mid-April, The Carlyle Group (CG +6.2%) offers compelling long-term value, says analyst Michael Cyprys, while KKR's (KKR -0.2%) balance sheet could be a near-term risk to earnings.
    • He upgrades Carlyle to Overweight with $20 price target (49% upside) and downgrades KKR to Equalweight with $14 price target (marginal upside).
    • Positive catalysts for Carlyle include a $4B exit portfolio pipeline, a $4B investment deployment pipeline, the just-announced $200M buyback, and management's increased focus on cost control. The market is likely to give more value to the company's future earnings potential as deployment speeds up, says Cyprys.
    • "We think the Street is mis-modeling KKR's balance sheet earnings, and we expect 1Q to be far more challenging than 4Q,” he says, expecting the company to report a loss of $1.51 per share vs. consensus of a $0.10 loss. He notes KKR's large public equity position (42% of funds vs. peers in the 11-27% range), along with negative credit and energy marks.
    | Wed, Feb. 17, 9:52 AM | 4 Comments
  • Thu, Feb. 11, 8:22 AM
    • Q4 economic net income of $71M or $0.08 per share vs. $46M and $0.05 one year ago. Full-year ENI of $1.21 per share vs. $1.84 in 2014.
    • Q4 after-tax cash earnings per share of $0.21 vs. $0.44 a year ago; full-year of $1.78 vs. $2.47 in 2014.
    • Book value per adjusted unit of $11.78 slips from $12.07 a year ago.
    • 17.5M shares bought back during quarter for $270M, and another 1.7M stock awards were canceled for a total of 19.2 shares retired - nearly 5% of the float.
    • Conference call at 10 ET
    • Previously: KKR misses by $0.19, beats on revenue (Feb. 11)
    • KKR -4.2% in very thin premarket action.
    | Thu, Feb. 11, 8:22 AM | 13 Comments
  • Thu, Feb. 11, 7:46 AM
    • KKR (NYSE:KKR): Q4 EPS of $0.08 misses by $0.19.
    • Revenue of $337.15M (+38.0% Y/Y) beats by $52.86M.
    • Press Release
    | Thu, Feb. 11, 7:46 AM | 3 Comments
  • Wed, Feb. 10, 5:30 PM
    | Wed, Feb. 10, 5:30 PM | 29 Comments
  • Wed, Feb. 10, 3:15 PM
    • These MOUs are paid to take their capital and reap big returns doing deals, not try and support the stock price with share repurchases. “It doesn’t make much sense, obviously,” says UMass economics professor William Lazonick.
    • Yet The Carlyle Group (CG +3.3%) today joined Apollo Global (APO -0.9%), KKR (KKR -5.2%), and Fortress Investment (FIG -1.7%) in launching sizable share repurchase programs, with Carlyle CEO David Rubenstein saying (earnings call transcript) none of his company's owners finds the current stock price "satisfactory or acceptable."
    • Don't look for Blackstone (BX +1.9%) to join the crowd. “Limited partners believe that if you don’t invest in your own funds, you don’t show confidence or alignment,” said Stephen Schwarzman on his recent earnings call (transcript). "We always want to have a lot of money around." Just to be clear, Schwarzman has also been very vocal about how cheap he believes Blackstone shares are.
    • The last word goes to Lazonick: “At least they’re not buying high, but that’s not relevant ... They should be trying to figure out how to invest better.”
    • ETFs: PSP, PEX
    | Wed, Feb. 10, 3:15 PM | 26 Comments
  • Tue, Jan. 26, 9:51 AM
    • Two German government sources have denied a Handelsblatt report that Berlin had given its consent to sell Airbus's (OTCPK:EADSY -0.1%) defense electronics unit to buyout groups KKR and Carlyle (NASDAQ:CG).
    • The sale is part of a plan by Airbus to dispose of assets with combined revenues of around €2B, following a strategic decision to focus on civil and military aeronautical and space assets in the face of low European defense spending.
    • Previously: Airbus defense asset sale 'progressing well' (Jan. 07 2016)
    • Previously: Airbus close to choosing final electronics bidder (Dec. 15 2015)
    | Tue, Jan. 26, 9:51 AM
Company Description
KKR & Co. LP provides investment and private equity asset management services. It operates business through three business segments: Private Markets, Public Markets and Capital Markets & Other. The Private Markets segment is comprised of the global private equity business, which manages and... More
Sector: Financial
Industry: Asset Management
Country: United States