New York-based private equity giant KKR has unveiled a significant step in its succession planning, announced the promotion of two executives primed to take over from co-founders Henry Kravis and George Roberts.
The company has set out its succession plans in an unusual move, naming Scott Nuttall and Joseph Bae as co-presidents and co-chief operating officers, and members of the private equity firm's board of directors.
The duo will be in charge of day-to-day operations, while Kravis and Roberts, who founded the firm in 1976, will continue to lead the group as co-chairmen and co-chief executive officers.
Kravis and Roberts said in a statement:
Today's announcement is about the future and ensuring we have the right team and leadership structure to serve our clients and partners for decades to come.
Having joined the firm together over 20 years ago, Joe and Scott have a strong foundation of trust, professional respect and personal friendship that is critical for success.
They think and act globally, they embody KKR's core values, and they are two of our most accomplished business leaders, with proven track records of managing large teams, building new businesses and driving value for our fund investors and our public unitholders.
Under the new structure, Bae and Nuttall will be jointly responsible for the "execution and implementation" of KKR's strategy, but will have different areas of primary responsibility. Bae will look after KKR's global private equity business, along with the firm's real asset platforms.
Nuttall meanwhile, will focus on KKR's corporate and real estate credit, capital markets, hedge fund and capital raising businesses, along with the firm's corporate development and balance sheet.
As part of the leadership switch-up, Alex Navab also announced he was planning to step down as head of Americas private equity and retire from the company after "an orderly transition".