I-investor

KKR's Double Whammy

KFN was underwritten with a combination of base and variable management fees to KKR. The fee's now ravage the company's cash flow. The affiliated loan at 15% will merely clean the table of any crumbs. This has been a very bad deal for the investors, underwritten by Bear Sterns of course. I can't see why any investor would put money up with KKR.