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KKR & Co. Inc. (formerly known as Kohlberg Kravis Roberts & Co. and KKR & Co. L.P.) is an American global investment company that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its strategic partners, hedge funds. The firm has completed more than 280 private equity investments in portfolio companies with approximately $545 billion of total enterprise value as of June 30, 2017.[6] As of September 30, 2017, Assets Under Management ("AUM") and Fee Paying Assets Under Management ("FPAUM") were $153 billion and $114 billion, respectively.[7]

The firm was founded in 1976 by Jerome Kohlberg, Jr., and cousins Henry Kravis and George R. Roberts, all of whom had previously worked together at Bear Stearns, where they completed some of the earliest leveraged buyout transactions. Since its founding, KKR has completed a number of transactions, including the 1989 leveraged buyout of RJR Nabisco, which was the largest buyout in history to that point, as well as the 2007 buyout of TXU, which is currently the largest buyout completed to date.[8][9]

KKR has offices in 21 cities in 16 countries across five continents.[1] The firm is currently headquartered in the Solow Building (9 West 57th Street, New York, NY), but in October 2015, the firm announced its intention to occupy a newly constructed 30 Hudson Yards.[10]

In October 2009, KKR listed shares in the company through KKR & Co., an affiliate that holds 30% of the firm's ownership equity, with the remainder held by the firm's partners. In March 2010, KKR filed to list its shares on the New York Stock Exchange (NYSE),[11] with trading commencing four months later, on July 15, 2010.

The Firm KKR

KKR is led by its executive leadership team, Henry Kravis, George R. Roberts, Joe Bae, and Scott Nuttall.[12] The firm employs approximately 375 investment professionals and 1,250 total employees as of December 31, 2017.[13] KKR is headquartered in the Solow Building at 9 West 57th Street, Manhattan, New York, with offices in Menlo Park, San Francisco, Houston, London, Dublin, Paris, Madrid, Luxembourg, Hong Kong, Tokyo, Beijing, Shanghai, Mumbai, Dubai, Riyadh, Seoul, São Paulo, Singapore, and Sydney.[1]

In a 2016 interview with Bloomberg, founder Henry Kravis described KKR in terms of three broad buckets: private markets, public markets, and capital markets.[14] The firm has traditionally specialized in private equity investments, focusing on specific industry sectors where the firm has created dedicated investment groups, including:

Core Americas Industries Core European Industries Core Asian Industries
Industrials Business Services Retail & Consumer
Financial Services Retail & Consumer Energy & Resources
Retail & Consumer Energy & Natural Resources Financial Services
Energy Financial Services Healthcare
Technology Healthcare Industrials
Media & Communications Industrials & Chemicals Media & Telecom
Healthcare Infra & Utilities Technology
Hospital & Leisure Technology, Media & Telecom Travel

Business Segments

KKR's business operates in four segments: private markets, public markets, capital markets, and principal activities.[15]

Through its private markets segment, the firm manages and sponsors a group of private equity funds that invest capital for long-term appreciation, either through controlling ownership of a company or strategic minority positions. In addition to traditional private equity funds, KKR sponsors investment funds that invest in growth equity and core equity. The firm also manages and sponsors investment funds that invest capital in real assets, such as infrastructure, energy, and real estate.[15]

Private Markets

KKR has raised 23 private and growth equity funds with approximately $102.9 billion of capital commitments through December 31, 2017. Its private equity investment strategy typically seeks to engage primarily in management buyouts, build-ups, or other investments with a view to acquiring a controlling or significant influence. The firm has sourced several smaller growth equity investments and expanded the business by launching dedicated growth equity funds.

KKR's first dedicated growth equity fund, launched in 2016, invests in the technology, media, and telecommunications sector, primarily in the United States, Canada, Europe, and Israel. In 2016, KKR also launched its second dedicated growth equity fund to pursue investments in the health care sector, also primarily in the United States. As of December 31, 2017, they have received $2.0 billion of capital commitments to these strategies.

In 2017, they further expanded on their private equity business by making their first core equity investment, targeting investments that have a longer holding period and a lower risk profile.

Energy

KKR's energy business aims to deliver current returns to fund investors through distributions generated by producing and selling oil and natural gas reserves and capital appreciation and targets real asset investments across the upstream and midstream segments of the oil and gas industry. KKR invests in these energy strategies primarily through the KKR Energy Income and Growth Fund. As of December 31, 2017, they have received $2.9 billion of capital commitments to their energy funds and $1.0 billion of capital commitments to this strategy through separately managed accounts.

Infrastructure

KKR's infrastructure platform seeks to achieve returns including current income through the acquisition and operational improvement of assets important to the functioning of the economy. The platform has made investments in parking, alternative energy, district heating and contracted electricity generation, water, and wastewater, locomotive transportation, midstream, and telecommunications infrastructure. As of December 31, 2017, KKR had received $4.1 billion of capital commitments to its infrastructure funds and $1.1 billion of capital commitments to this strategy through separately managed accounts and co-investment vehicles.

Real Estate

KKR Real Estate Finance Trust Inc.