Tue, Mar. 17, 12:00 PM
- Apartment prices in North Dakota's oil patch - which last year rivaled those in NYC - have dipped 15-20% in the last two months, reports Reuters - a combination of frenzied building and the plunging oil prices.
- The town of Williston issued permits for 1,290 units in 2014, ten times the amount in 2009. At that city's Dakota Ridge apartments a 2-bedroom which went for $3.2K per month one year ago is going for $2.6K now, even with just-added perks like a hit tub and free alcohol/snacks in the common lounge.
- KKR upscale Prairie Pines has cut rents by nearly 20% since last summer.
- "I could see the quality of life improving for some people if they're not worried each month about how they're going to make rent," says Investors Real Estate's (IRET +0.3%) Justin Hammer. IRET owns apartments in Williston and Minot, some of which it's pricing below market to appeal to families and retirees.
Sun, Mar. 15, 5:47 AM
- In one of the biggest deals in the Asia-Pacific region so far this year, a consortium of KKR (NYSE:KKR), Varde Partners and Deutsche Bank (NYSE:DB) has agreed to buy GE (NYSE:GE) Capital's Australian and New Zealand consumer lending arm for about $A8.2B ($6.26B).
- The move comes after General Electric disposed of its appliances unit, real estate holdings and a stake in NBCUniversal, and shed more of its banking businesses to return to its industrial focus.
- Previously: GE reportedly weighing deeper cuts to banking business (Mar. 11 2015)
Wed, Mar. 11, 8:48 AM
- One of the country's largest privately-held natural gas producers, Samson Resources - owned by KKR - is expected to break its loan covenants within weeks, reports the NYPost.
- Samson last month hired restructuring advisers and is in talks with a JPMorgan-led group over its $1B revolver. Samson last year broke the covenant on this line and JPMorgan gave it a waiver while lowering the borrowing limit to $1B from $1.8B.
- KKR - which led the $7.2B buyout of Samson in 2011 - could see its equity stake wiped out less than a year after another of its energy portfolio, Energy Future Holdings, filed for bankruptcy.
Tue, Mar. 10, 2:18 PM
- KKR (NYSE:KKR) is in advanced talks to acquire Air Medical Group from Bain Capital in a deal that could value the U.S. helicopter ambulance company at around $2B including debt.
- A deal could be announced as early as this week.
- Bain acquired Air Medical in 2010 in a $1B deal.
- Bain is working with Barclays on an auction for Air Medical.
- Source: Reuters
Tue, Mar. 3, 12:37 PM
- Former CIA director David Petraeus will plead guilty to one count of unauthorized removal and retention of classified materials, and he could spend up to one year in prison.
- He's currently the head of KKR Global Institute - a unit of KKR charged with figuring how macroeconomic trends and government policy will affect its investments - and KKR has issued a statement suggesting Petraeus will remain in his position.
Fri, Feb. 27, 2:58 PM
- Craig Farr, 43, joined KKR in 2006 from Citigroup, where he co-led the North American capital markets business, and he helped build and syndicate the $900M IPO of KKR's first debt vehicle.
- As head of credit and capital markets at KKR, he oversees 125 rainmakers.
- Adam Smith will replace him as head of the capital markets unit, and Nat Zilkha and Alan Burke will take over the credit group.
- Capital markets generated 8.7% of KKR's pretax profit last year, write Devin Banerjee and Jason Kelly, and the public markets business - which includes hedge funds and credit strategies - was responsible for 14%.'
Thu, Feb. 19, 3:52 PM| Thu, Feb. 19, 3:52 PM | Comment!
Tue, Feb. 10, 9:16 AM
Tue, Feb. 10, 8:43 AM
- Q4 economic net income of $86.6M down from $786.6M one year ago. ENI after taxes per unit of $0.05 vs. $1.04 a year ago.
- Private Markets revenue fell to $283.4M in Q4 from $1.013.7B a year ago, mostly thanks to markdowns on the company's energy investments. The portfolio appreciated 2.7% during the Q, but energy holdings were marked to about $0.76 on the dollar vs. $1.14 at the end of Q3.
- The dividend is cut to $0.35 per unit vs. a recent $0.45.
- Conference call at 10 ET
- Previously: KKR misses by $0.40, misses on revenue (Feb. 10)
- KKR -4.9% premarket
Tue, Feb. 10, 8:19 AM
Mon, Feb. 9, 5:30 PM
Mon, Feb. 2, 6:46 AM
- CRH (NYSE:CRH) is not planning to keep control of all the assets it has agreed to buy from Holcim (OTCPK:HCMLY) and Lafarge (OTCPK:LFRGY).
- The Irish building supplies company is now in talks with private equity firm KKR (NYSE:KKR) to partner on some.
- CRH +5.8% premarket
- Previously: CRH to buy Lafarge, Holcim assets (Feb. 02 2015)
Mon, Feb. 2, 4:07 AM
- Morgan Stanley (NYSE:MS) is shopping its oil-trading and storage business again after an earlier deal with Rosneft (OTC:RNFTF), valued at several hundred million dollars, fell through last month.
- Morgan Stanley is still seeking a similar price to that of its first offer, as oil storage prices soar due to the recent collapse of crude prices.
- Macquarie Group (OTC:MCQEF) and KKR (NYSE:KKR) have emerged as early contenders to acquire the unit.
Tue, Jan. 27, 10:35 AM
- “Challenges in energy and credit are likely to damp results,” says BofA's Mike Carrier, who expects the strongest quarter at Blackstone (BX -0.8%) and the weakest at Carlyle Group (CG -0.8%).
- A Bloomberg survey of analysts finds them seeing a 73% Y/Y profit decline at Carlyle, 63% at Apollo Global (APO +0.2%), 60% at KKR (KKR -1.4%), and Blackstone - the most diversified - at just 32%.
- The P-E industry is entering the later stages of a selling cycle which began in 2012 and has made investors a fortune, but now is under pressure to put a whopping $1.2T to work. It should find ample opportunity in the energy sector.
- ETFs: PSP, PEX
Sat, Jan. 24, 8:25 AM
- In a low-yield world, the newly launched iBillionaire High Dividend Index - which tracks the trading moves of 25 investing-savvy billionaire investors such as Stanley Druckenmiller, James Dinan and Nelson Peltz - actually lives up to its name with a dividend yield of 5.34%.
- At 24%, the index has a high allocation of energy shares, including OXY, TRP, CNP, COP, BP, ATLS, CVI, WMB, APL, RIG and ARP.
- Also worth noting is that the index contains some high-yielding mortgage REITs, an area most investors hate right now but where billionaires seem to find value; examples are NRF, AGNC and CIM.
- No mutual fund or ETF tracks this index, but it offers a fishing pond of income investment ideas to research further.
- The top 20 holdings: TLM, CVC, GM, TIME, AEE, D, STAY, KMI, TROX, EXC, STNG, PPL, IRM, PFE, KKR, KAR, F, MIC, LO, ABBV.
Thu, Jan. 22, 1:14 PM
- "The pace of change has been surprising," says Igor Rozenblit, the SEC's co-head of private-funds compliance, noting P-E firms have put a stop to some of their worst violations, but still have room for improvement.
- The SEC last May said it found illegal fees or severe compliance shortfalls in more than half the P-E firms it reviewed starting in 2012.
- Firms including Blackstone (BX +2.9%) and KKR (KKR +2.9%) have ended the collection of certain fees, begun disclosing previously hidden charges, and refunded some bills to investors.
- A report in the WSJ from last night, says KKR refunded money to investors in some of its buyout funds after the SEC found they had been overcharged.
- ETFs: PSP, PEX
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