Jun. 2, 2014, 2:20 AM
- KKR (KKR) has terminated KKR Equities Strategies - its first stock hedge fund launched less than three years ago. The fund was made up of a dozen former Goldman Sachs (GS) traders, and was started by KKR to diversify its business.
- The termination was decided due to "lack of scale" and focus on other hedge fund products.
- Since its start in 2011, the fund reported an average annualized return of about 5%.
- At of the start of May, KKR Equities Strategies had about $510M under management. A third of the clients were from KKR, and there were less than 20 external investors.
May 27, 2014, 8:43 AM
- Goodpack is a provider of bulk containers and KKR's offer of S$2.50 per share is a 6.8% premium to Friday's closing price. The stock is higher by 20% this year vs. a 3.5% gain for the Straits Times Index.
- Goodpack Chairman David Lam, an owner of 32% of the stock - is supportive of the bid.
- KKR has promised to get busier in the Asia-Pacific region and this bid follows this month's $2.8B attempt (failed thus far) to buy Australia's Treasury Wine Estates, and the purchase of an 80% stake in Panasonic Healthcare in March.
May 27, 2014, 8:13 AM
- India's largest coffee chain with 1,650 outlets (and another 350 on the way), Cafe Coffee Day has begun interviewing investment bankers, reports Bloomberg, and could seek a valuation of about $1B. The offering could help the company extend its market share lead in India over rivals like Starbucks (SBUX) which opened its first store in that country less than two years ago.
- KKR invested in Cafe Coffee's holding company - Amalgamated Bean - in 2010.
May 23, 2014, 3:47 AM
- Treasury Wine Estates (TSRYF) and Bright Food Group have dismissed a report that the Chinese company is in talks to buy the Australian vintner.
- The denials come after Treasury Wine rejected a A$3.1B ($2.9B) proposal from U.S. private-equity firm KKR (KKR) earlier this week.
- Treasury has also dismissed reports recently that it has received separate approaches from Constellation Brands (STZ) and France's Pernod Ricard (PDRDY) for Treasury's U.S. operations.
May 22, 2014, 10:09 AM
- In response to inquiries from the WSJ, KKR (KKR -2.8%) says it erroneously listed in-house consulting unit KKR Capstone as a subsidiary in its 2011 annual report. Additionally, several KKR-controlled public companies wrongly described Capstone as a KKR "affiliate" in regulatory filings, and statements on investor calls identifying Capstone's lead executive as a KKR partner were "technically incorrect."
- The admissions raise a ticklish legal issue as KKR is required to share with investors in its largest buyout fund 80% of any "consulting fees" earned by any KKR affiliate. Capstone has earned the bulk of about $170M in consulting fees reported by KKR over the past three years, but the P-E firm says the unit is owned by Capstone management, not KKR. As Capstone isn't an affiliate, according to KKR, it's consulting fees don't have to be shared with investors.
- This fee-sharing issue is being raised as the SEC ramps up its own probe of fees and disclosures in the P-E industry.
May 21, 2014, 11:10 AM
- KKR is planning to raise $300M in 30-year money with its third-ever bond offering, reports Bloomberg, which says the paper could yield as little as 187.5 basis points above comparable Treasurys.
- This compares with a spread of about 245 basis points on $500M of 30-year bonds issued by KKR in January 2013. Those are currently quoted at 108.5 cents on the dollar to yield 4.94%.
- Previously: Companies rush to borrow amid "wall of money"
May 20, 2014, 3:33 AM
- Treasury Wine Estates (TSRYF) has rejected a A$3.05B ($2.85B) offer from KKR (KKR), saying that the A$4.70-a-share bid undervalues the Australian vintner.
- KKR's proposal follows a series of setbacks for Treasury, including poor U.S. sales that prompted the company to destroy thousands of gallons of wine last year.
- "KKR is looking to split it up, (and) clean up the U.S. business for an eventual trade buyer who can benefit from synergies," says portfolio manager Will Seddon.
- Treasury Wine closed up 18% at A$4.80 in Sydney.
May 19, 2014, 4:59 AM
- KKR (KKR) is reportedly in advanced negotiations to pay at least $1B to acquire Singapore's Goodpack, the world's biggest provider of intermediate bulk containers, including those used in the the rubber, tire and food industries.
- KKR is in talks with at least two investment banks for a debt package that would enable it buy Goodpack, whose market cap is S$1.38B ($1.1B).
- The transaction would give KKR access to a niche business that has a global network and supply chain management, and that is difficult to copy, says DBS Group.
Apr. 29, 2014, 7:20 AM
- Energy Future Holdings has finally made its long-awaited filing for bankruptcy protection following months of talks over the Texas utility's debt burden of more than $40B, which is a legacy of its massive LBO in 2007.
- Energy Future filed for Chapter 11 prior to a deadline this week for the payment of $100M in debt.
- The company hopes to use its Texas Competitive Electric Holdings unit, which sells power in wholesale markets, to receive debt forgiveness of $25B.
- Energy Future's owners are KKR (KKR), Goldman Sachs Capital Partners (GS) and TPG Capital. One group of creditors includes Apollo Global (APO) and Oaktree Capital, and another involves Blackstone Group's (BX) GSO Capital Partners.
Apr. 25, 2014, 7:56 AM
- Private equity firms have been aiming to reach a new group of investors, and KKR is making it happen, teaming with Nasdaq OMX (NDAQ) to form an exchange in which investors can sell a portion of their stakes in KKR buyout funds. KKR is likely to file regulatory paperwork as soon as this month, reports the WSJ.
- The institutions and wealthy individuals who invest in P-E buyout funds (with minimums of millions of dollars required) typically must agree to have their money tied up for a decade or more, but this deal will allow them to sell smaller investors slices for as little as tens of thousands of dollars - the investors can cash out earlier than usual and the P-E firms get a far broader range of investors.
- The already-public listings of P-E firms on major exchanges - with BX, CG, APO, FIG for instance, joining KKR - offer mom and pop investors shares in the parent companies rather than the individual buyout funds.
- ETFs: PSP, PEX
Apr. 24, 2014, 12:03 PM
- KKR Financial (KFN +3.2%) reported Q1 earnings yesterday after the bell, but the stock is ahead because of a 3%-plus gain at KKR which reported its results earlier this morning.
- Previously: Surging markets boost KKR
- Previously: KKR Financial Holdings LLC misses by $0.02
- KKR expects its acquisition of KKR Financial to close sometime this quarter. KFN owners will receive 0.51 shares of KKR for each share of KFN they own.
Apr. 24, 2014, 8:31 AM
- Economic net income of $630.3M falls from $647.7M one year ago, but distributable earnings of $446.8M are up 54% Y/Y as buoyant stock markets made it a good time to harvest. IPOs in Q1: Pets at Home, Santander Consumer USA. Share sales in companies already public: Jazz Pharma and Nielsen. Realized carried interest of $168.8M nearly doubles from last year's $88.1M.
- The carrying value of the P-E portfolio rose 4.5% in Q1 vs. 5.9% one year ago (Blackstone's rose 7% in 2014 Q1).
- CC at 10 ET
- Press release, Q1 results
- KKR +1.1% premarket
Apr. 24, 2014, 8:09 AM
Apr. 24, 2014, 12:05 AM
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Apr. 23, 2014, 4:37 PM
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