KKR moves a step closer to US flotation

KOHLBERG Kravis Roberts (KKR), the private equity firm co-founded by &ldquo;buyout king&rdquo; Henry Kravis, yesterday secured agreement for a merger with its affiliated private equity fund KKR Private Equity (KPE).<br /><br />The KPE board accepted the merger offer, initially made in June, taking Kravis&rsquo; KKR a step closer to its eventual goal of a becoming a New York Stock Exchange-listed company.<br /><br />The terms of the deal have been boosted, the firm said, and KPE shareholders will now be given a 30 per cent stake in KKR immediately.<br /><br />KKR would form part of KPE, which is listed on the Euronext Amsterdam stock exchange, taking it closer to following rival Blackstone in becoming New York listed.<br /><br />KKR also provided an update on its profit outlook yesterday, saying earnings for the second quarter were expected to be between $345m (&pound;209m) and $370m. It also said assets under management to the end of June are now thought to be $50.8bn, a seven per cent rise from the $47.3bn figure issued in May.