Nov. 27, 2013, 8:23 AM
- Citing the dreaded "unfavorable market sentiment" towards resource stocks, KKR's Australian mining services company Bis Industries earlier this month shut down a plan to raise as much as $465M in an IPO, reports the WSJ (a move now confirmed by the company).
- P-E firms are trying to take advantage of generally positive markets to exit Australian investments, and Bis was one of more than a dozen planned IPOs before year's end. "People are hoping the worst for mining services companies is over, but no one is really sure and that creates a pretty uncertain environment,” says Pengana Capital's Tim Schroeders. “Contractors are in oversupply, and big mining companies are seeking to cut rates on existing contracts.”
Nov. 22, 2013, 7:30 AM
- The French supplier of flooring products (the world's 3rd largest) priced at €29 each, and the amount raised could rise to as much as €531M should the underwriter greenshoe be exercised. The company has been jointly owned by KKR and the Deconinck family since 2007, and KKR will retain an 18.9% stake after the offering.
- The stock's off a bit in early trades at €27.76.
Nov. 21, 2013, 7:28 AM
- KKR picks up another investment opportunity amid tough times in Europe, leading a consortium acquiring industrial company Winoa Group from LBO France. The acquisition will recapitalize the company through a significant reduction in debt and allow access to funds for new growth.
- "Winoa is an industrial company with excellent sector-expertise and global ambitions. This is exactly the type of company that we like to support. Amidst the current dislocation in the European markets, we have made, and will continue to make, investments in such enterprises,' says Mubashir Mukadam, Head of Special Situations for KKR Europe.
- Press release
Nov. 14, 2013, 10:28 AM
- Markel's (MKL) Tom Gayner added five new stocks to the company portfolio in the last quarter, and he likes fertilizers and private equity, buying 150K shares of Mosaic (MOS) and 70K shares of Potash (POT), 100K shares of Apollo Global (APO), 105K shares of Apollo Group (APOL), and 10K shares of Copart (CPRT). In addition to the Apollo Global purchase, he greatly boosted stakes in KKR, Blackstone (BX), and Carlyle Group (CG).
- He completely sold out of positions in Quaterra Resources (QMM) and Union First Market Bankshares (UBSH).
- CarMax (KMX) remains his portfolio's top holding at 8.4%, but Gayner did cut his stake by 1.46%.
Nov. 12, 2013, 2:57 PM
- The U.K.'s largest pet store by sales could be valued at £1.5B, reports the FT, and the deal - should it happen - would be the latest in what has become a flurry of IPO activity for companies which had to scrap offering plans during and after the financial crisis.
- KKR bought the company in 2009 for £955M after its previous owner couldn't pull off an IPO. The company - with more than 350 stores across the U.K. - earned just more than £100M in the year ended in March. "Market conditions remain challenging with disposable incomes under pressure for many of our customers,” recently said the CEO Nick Wood.
- Pets at Home was able to cut its debt enough over past years for KKR to give itself a £135M payout in a so-called dividend recapitalization this past February.
Nov. 12, 2013, 2:49 PM
- KKR and partner Permira look to cut more of their stake in German broadcaster ProSieben, putting another (roughly) €1.2B worth of shares on the block, reports Reuters.
- The two unloaded about a quarter of their holdings in the company just after Labor Day, leaving them with 33% of ProSieben. This latest sale would take their combined stake down to 17%.
Nov. 11, 2013, 9:47 AM
- As rumored yesterday, a couple of P-E giants cut a deal, with KKR agreeing to buy The Brickman Group from Leonard Green & Partners (and other shareholders, notably the Brickman family) for $1.6B.
- This country's largest provider of commercial landscaping services, Brickman has about 10K employees. Leonard Green purchased a majority stake from the Brickman family in early 2007 for $847B. Green put the company on the block this past summer.
- Press release.
Nov. 10, 2013, 1:14 AM
- KKR (KKR) is reportedly in late-stage talks to acquire commercial landscaper Brickman Group Holdings from fellow private-equity firm Leonard Green & Partners for $1.5B.
- The deal, which could be announced tomorrow, would add to KKR's acquisitions, or prospective acquisitions, of Gardner Denver, Panasonic's healthcare business and lifting-equipment firm Crosby.
Nov. 3, 2013, 3:20 AM
- Energy Future Holdings has made a $270M payment to junior creditors, staving off a potential filing for bankruptcy protection but upsetting more senior debtees.
- Despite days of talks between creditors and the company's owners, the sides couldn't agree on the conditions of a Chapter 11 filing.
- A submission could now come in March, when the Texas utility is due to report its 2013 results, as its auditors are thought likely to refrain from providing the company's accounts with the status of "going concern," which is needed to avoid the triggering of a default.
- If and when the bankruptcy filing does come, Energy Future will have up to $4.35B available in financing, an amount that it has just secured.
- One group of creditors includes Apollo Global (APO) and Oaktree Capital, while another involves Blackstone Group's (BX) GSO Capital Partners. Energy Future's owners are KKR (KKR), TPG and Goldman Sachs (GS). (Previous)
Oct. 28, 2013, 1:08 PM
- KKR boosts exposure to the Indian health care market with about a $90M investment Apollo Hospitals Enterprise. It will be a convertible debt investment, with KKR having the option to convert to stock after five years. Indian business owners have typically been hostile to parting with equity to get P-E investment, leading to balance sheets saddled with debt at at time of rising rates and a falling rupee.
- Apollo operates 51 hospitals, 1,053 drugstores, and 92 primary-care and diagnostic clinics.
Oct. 28, 2013, 7:29 AM
- In a deal maybe to be announced as early as today, reports the WSJ, KKR will initially invest $100M into a partnership with Associated Partners (David and Bill Berkman) to build a wireless-communications infrastructure.
- Associated has lately looked to ramp up business upgrading wireless systems in relatively poorly-served rural areas, with 20 teams around the country working on rewiring hard-to-reach cell sites with the latest high-speed equipment.
- For KKR, the deal is similar to ones struck with Chesapeake and Schlumberger in which the P-E firm capitalized on the U.S. drilling boom. Now it's looking to profit from soaring smartphone usage.
Oct. 26, 2013, 3:36 PM
- Amid a big run for his stock and the private-equity industry in general, Blackstone (BX) President (and putative successor to CEO Stephen Schwarzman) Tony James sold 3.25M shares last week, netting him and his family $88.6M.
- James began the year owning over 10M common shares of Blackstone, but a big sale in February and a smaller divestiture this summer combined with this week's exit to leave him with 3M.
- Up 71% YTD, the stock - needless to say - has cruised right through his earlier sales. Insider buys are always more interesting as execs have any number of reasons to sell, but buy for just one reason.
- Blackstone has made plenty of headlines of late for prepping exits from a number of high-profile real estate deals, and is near bringing to market an ABS backed by rental payments from part of its now-$7B empire of single-family properties.
- "We're in the middle of an epic credit bubble ... the likes of which I haven't seen in my career," said Blackstone global head of P-E Joe Baratta last month. "Valuations we have to pay relative to the growth prospects are out of whack right now."
- Up and to the right would how be how one well-known trend-following wag would describe a chart of P-E (BX, KKR, FIG, OAK, APO) performance over the last year.
Oct. 25, 2013, 11:58 AM
- Coming off a big quarter for deals, KKR eyes another - considering a bid for Macquarie's 46% stake in Australian senior care provider Regis Group. The value of this stake has previously been reported to be in the area of $163M.
- KKR's interest in residential aged care comes amid a flurry of deals in the sector over the past few months, and the P-E firm already has exposure to Australian health care through Genesis Care - the country's largest privately-held provider of cardiology, sleep treatments, and radiation oncology.
- Yesterday: KKR reports a big Q3.
Oct. 24, 2013, 9:12 AM
Oct. 24, 2013, 9:08 AM
- Slashing his FY13 EPS estimate to $1.37 from $1.63 and his FY14 estimate to $1.07 from $1.43, analyst Scott Valentin, remarks on the challenges of transitioning earnings from steady high-yielding bank loan and high-yield interest income to lower-yielding CLOs, and less-predictable high-return investment income.
- He does expect the $0.22 quarterly dividend to remain safe, but sees little in the way of growth. "The shift in strategy to more highly visible cash flow investments, while reducing earnings volatility, will most likely result in lower returns than the targeted 10-year Treasury + 1000 bps."
- He expects the stock to trade close to $10.42 book value while investors take a wait-and-see approach on the new strategy.
- Last night: Q3 results and earnings call transcript.
- KFN -8% premarket to $10.
- Management from call: "At this point the three areas we are focused on for new capital commitments are CLO equity, opportunistic credits and then a new, a related area, specialty financed lending."
Oct. 24, 2013, 8:37 AM
- Economic net income of $613.7M is up 20% Y/Y, with investment performance beating that of its peers - the P/E portfolio appreciated 5.9% in Q3 vs. 4.2% for Blackstone and 5% for Carlyle's buyout funds.
- Private markets AUM of $59.7B up 9.5% sequentially thanks to those portfolio gains and new capital raised, offset by distributions.
- Public markets AUM of $30.5B up 5.2% thanks to new capital raised.
- Company made $1.8B of investments during Q vs. $623M a year ago. The $1.8B is the fastest pace of deals in two years.
- Distribution of $0.23 per share is announced.
- Conference call at 11 ET.
- Q3 results, press release.
- KKR +3.7% premarket.
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