kkr strategic investments group is an important branch of kkr, mainly responsible for kkr’s strategic investment business. As one of the top private equity firms in the world, kkr has very rich investment experience and outstanding investment capabilities. This article will focus on introducing kkr’s investment strategies and major investment cases of kkr strategic investments group, hoping to help you better understand kkr’s investment philosophy and strengths.
kkr adheres to the “lbo + mbo” investment model to achieve win-win situation with management
As mentioned in the background article, kkr is very good at using the “leveraged buyout (lbo) + management buyout (mbo)” model for investment. Taking the acquisition of Duracell as an example, kkr sold 35% of the shares to the management team at a low price, which strongly motivated the management team. Under the leadership of the original CEO Bob Kandor, Duracell achieved 50% cash flow growth in the first year after acquisition. The ultimate benefits were shared by both kkr and the management team.
kkr strategic investments group is experienced in large-scale acquisitions like RJR Nabisco
As the top PE firm, kkr strategic investments group has very rich experience in large-scale mergers and acquisitions. The most classic case should be the 1989 acquisition of RJR Nabisco at a sky-high price of $25 billion. Although the later operation of RJR Nabisco was not very successful, this acquisition fully demonstrated kkr’s strong capital leverage capabilities and determination to win.
kkr has close cooperative relations with management consulting firms
As mentioned in the Columbia background article, kkr should have very close ties with management consulting firms. It can provide consulting services for the companies invested by kkr through management consulting partners, so as to promote business adjustments and enhance corporate value. This should be an important part of kkr’s investment model.
kkr pays attention to ESG and sustainable investment
In July 2019, kkr launched the kkr global impact fund, which focuses on investing in high growth companies that can produce measurable social and environmental impacts. This shows that in recent years, kkr is also actively embracing the ESG and sustainable investment trend. The kkr strategic investments group should play an important role in this regard.
To sum up, kkr strategic investments group is an important branch of kkr, mainly responsible for kkr’s strategic investment business. kkr has very rich experience in LBO, MBO, large-scale acquisitions and cooperation with consulting firms. In recent years, kkr has also actively embraced ESG ideas and sustainable investment strategies.