Henry Kravis and George Roberts resign as KKR chiefs

Henry Kravis and George Roberts, who became the face of the private-equity fund with the swashbacking leveraged buyouts of the 1980s, have resigned as co-chief executive officers of KKR, a company of the same name founded in 1976.

The company’s longtime co-presidents Scott Natal and Joe Be will be in command together, KKR said Monday. Kravis and Roberts will continue to chair the Board of Directors, maintain investor relationships and advise on the company’s strategy.

KKR rivals such as The Carlyle Group, Apollo Global Management and TPG have seen the $ 4 trillion private equity industry mature in recent years, surpassing debt takeovers and giving long-time founders a torch to the younger generation. I have come.

“We couldn’t get any more excited at this moment,” 77-year-old Clavis and 78-year-old Roberts said in a joint statement. “The need for private capital to support businesses is enormous, and KKR still has great potential 45 years later.”

Cousins ​​Clavis and Roberts, who studied together at Claremont Men’s College in the late 1960s, worked together at the investment bank Bear Stearns and then departed with mentor Jerome Kohlberg to Kohlberg, Kravis and Roberts. & Company was established.

Over the next decade, the company took off with the advent of the junk bond market and acquired household names such as Safeway and Duracell.But KKR’s $ 25 billion conquest RJR Nabisco Immortal in the book in 1989 Barbarian at the gateWill become a symbol of a new kind of scorched earth operation that has created millionaires but left a genocide on bankrupt companies and communities. Kohlberg left KKR in 1987 He died in 2015.

Clavis and Roberts, despite their size, are closely associated with the company. KKR employs approximately 2,000 people and manages $ 492 billion in assets across private equity, real estate, insurance and credit investments. Roberts is based in San Francisco, and Clavis in New York is one of the most prominent members of the San Francisco business community.

This year, KKR completed the $ 5 billion acquisition of life insurance company Global Atlantic. This extends its reach to fixed income investments and corporate lending. KKR was published in 2011. Its market share has increased by 130% since the beginning of 2020, with a market capitalization of over $ 60 billion.

KKR and its associates now manage hundreds of billions of dollars, evolving from isolated partnerships to large publicly traded companies, attracting the dominant urge of founders and public market investors to be peaceful I had to carefully balance it with the need to do it. Public glare. KKR has announced plans to reorganize as a company, paying higher tax rates, while having a one-share, one-vote structure.

Nuttall (48) and Bae (49) each joined KKR in their 20s in 1996. Bae built KKR’s Asian business and Nuttall focused on the company’s capital markets and credit activities.

Kravis and Roberts are the top two shareholders of KKR and are entitled to a dividend of $ 90 million each in 2020.

Henry Kravis and George Roberts resign as KKR chiefs

Source link Henry Kravis and George Roberts resign as KKR chiefs

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