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  • Yesterday, 11:37 AM
    • Private-equity buyouts of $17.14B YTD are at their lowest level since 2012 as banks - with regulators looking over their shoulders - cut back on the amount of debt they'll extend for takeovers. Leveraged loan volume this year of $26.5B is 82% less than the same time frame in 2014, and the lowest since 2009.
    • Fewer and smaller deals, along with less leverage means less risk, but also means lower returns for buyout firms. It also means lower prices for sellers.
    • “The limitation on leverage has taken away some buying power and in some cases, created a gap between sellers’ expectations and the price that private-equity firms can justify paying,” says Carlyle Group's (CG -1%) Pete Clare.
    • According to S&P Capital IQ, 21% of P-E deals this year have been financed with leverage at or above levels deemed risky by regulators; that's down from 35% in Q4 and 60% in Q3.
    • Along with Carlyle, Blackstone (BX -0.9%) in its annual report warned leverage restrictions could hurt its business. Apollo Global (APO -1.7%) and KKR (KKR -1.2%) included similar language in both their 2013 and 2014 filings.
    • Source: WSJ
    • ETFs: PSP, PEX
  • Wed, Mar. 18, 9:25 AM
    • A JPMorgan-led group holding the paper on a $1B revolver on the natural gas producer is nearing a deal to give Samson a waiver for an expected covenant breach, reports the NYPost. This comes as the Fed presses JPMorgan and other lenders to increase their reserves against energy-related loans.
    • As part of the waiver deal, JPMorgan is expected to reduce the size of Samson's line of credit. A similar agreement last year cut the revolver from $1.8B to today's $1B.
    • The waiver hardly gets Samson out of the woods as it has an interest payment due to junior creditors in August.
    • KKR led the buyout of Samson for $7.2B in 2011.
    • Previously: Report: KKR's Samson Resources near breaking loan covenants (March 11)
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  • 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.
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  • 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
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  • 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
    • An announcement of KKR's Panasonic Healthcare's purchase of Bayer's (OTCPK:BAYRY) diabetes devices business could come as soon as today, reports Bloomberg, which says the business could fetch between €1B and €2B.
    • KKR owns 80% of Panasonic Healthcare, with Panasonic owning the rest.
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  • Tue, Feb. 10, 9:16 AM
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  • 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
    • KKR (NYSE:KKR): Q4 EPS of $0.05 misses by $0.40.
    • Revenue of $212.94M (-5.3% Y/Y) misses by $46.87M.
    • Press Release
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  • Mon, Feb. 9, 5:30 PM
  • Mon, Feb. 2, 6:46 AM
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  • 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.
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  • 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
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Company Description
KKR & Co LP offers a broad range of asset management services to its investors and provides capital markets services to its firm, its portfolio companies and its clients.
Sector: Financial
Country: United States