Private equity firm KKR & Co. L.P. completed its IPO (for more information, go to our 7/15/10 post) and its final IPO prospectus was filed with the. This prospectus is not an offer to sell these securities and it the ability to complete an initial public offering of the portfolio company in which. The IPO profiles may contain historical records. Led by Henry Kravis and George Roberts, KKR is a global alternative asset manager with $ billion in AUM.
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We believe the “KKR” name is associated with the successful execution of many of the largest and most complex private equity transactions worldwide; a focus on operational value creation; a strong investor base; a global network of strong business relationships; a reputation for integrity and fair dealing; and a distinguished track record ilo generating attractive investment returns.
Our unitholders do not control our Managing Partner or vote in the election or removal of its directors and will have limited ability to influence decisions regarding our business. Recently, labor unions have been more active in opposing certain larger investments by our private equity funds and private equity firms generally.
KKR-A Search Results –
During our year history, we have successfully invested under all types of economic and financial conditions, developing a track record that we believe distinguishes our firm. If a variation of this proposed legislation or any other change in the tax laws, rules, regulations or interpretations preclude us from qualifying for treatment as kir partnership for U.
We believe the intellectual capital of our people, our integrated global investment platform and our ability to effectively adapt our investment strategies to market conditions allow us to capitalize on investment opportunities at every level of a company’s capital structure. And that does cut banks out of one of its main roles in LBOs.
When an investment does not have a readily available market price, the fair value of the investment represents the value, as determined by us in good faith, at which the investment could be sold in an orderly disposition over a reasonable period of time between prospectuus parties other than in a forced or liquidation sale.
You should read this entire prospectus carefully, including the section entitled “Risk Factors” and the historical financial statements and related notes included elsewhere herein, before you decide to invest in our common pgospectus. Capital markets activities propectus an opportunity to efficiently increase our available investment capital, capture certain financing fees otherwise paid to third parties and earn incremental margins on committed capital.
Operational risks may disrupt our businesses, result in losses or limit our growth. We also cannot be certain that our due diligence investigations will result in investments being successful.
We are truly a global firm.
We believe that by maintaining investment discipline and taking a “hands-on” approach to our investments, we will be best positioned to continue to generate attractive returns for our funds and create long-term value for our unitholders.
We intend to adhere to the disciplined investment approach that we have developed over our year history, focusing in particular on driving value creation from the time an investment is made. Ultimately, the focus shifts to capitalizing on business opportunities to drive value creation over the long term. Our Managing Partner will not have an economic interest in our partnership except for one common unit.
Dependence on significant leverage in investments by our funds could adversely affect our ability to achieve attractive rates of return on those investments.
Our principal growth strategy throughout our firm’s year history has been to expand our existing private equity businesses and to enter attractive new businesses.
Moreover, we will apply certain assumptions and conventions in an attempt to comply with applicable rules and to report income, gain, deduction, loss and credit to unitholders in a manner that reflects such unitholders’ beneficial ownership of partnership items, taking into account variation in ownership interests during each taxable year because of trading activity. Our earnings are highly variable from quarter to quarter due to the volatility of investment returns of most of our funds and other investment vehicles and the fee income earned from our funds.
KKR aims to take role of banks with IPO
The violation of these obligations and standards by any of our employees would adversely affect our clients and us. In addition, because we value our investments on a quarterly basis only, subsequent events that may have a material impact on those valuations will not be reflected until the next quarterly valuation date.
Our other employees are expected to receive equity grants at the time of this offering, which we believe will similarly align their interests. Our fund investors consist of a diversified group of some of the largest public and private pension plans, global financial institutions, university endowments, funds of funds and high net worth individuals, many of whom have invested with us for decades across multiple funds that we have sponsored.
Our most important asset is our people, and our continued success is highly dependent upon the efforts of our principals and other professionals. A leveraged company’s income and equity also tend to increase or decrease at a greater rate than would otherwise be the case if money had not been borrowed.
The banks put up the loans, known as equity bridges, and sell down their exposure to investors. We also believe that continuing to follow our long-term investment philosophy will allow us to continue to build the value of each of our existing portfolio companies, whether or not such growth produces distributable cash flow in a particular period. The objective of the due diligence process is to identify attractive investment opportunities based on the facts and circumstances surrounding an investment and, in the case of private equity investments, and to prepare a framework that may be used from the date of an acquisition to drive operational achievement and value creation.
Approximate date of commencement of the proposed sale of the securities to the public: If our Managing Partner determines that its resolution of the conflict of interest is on terms no less favorable to us than those generally being provided to or available from unrelated third parties or is fair and reasonable to us, taking into account the totality of the relationships between us and our Managing Partner, then it will be presumed that in making this determination, our Managing Partner acted in good faith.
We have developed an institutionalized process for creating value orospectus the companies in which we invest by focusing on the operational and strategic aspects of their businesses. A decline in realized or unrealized gains, or an increase in realized or unrealized losses, would adversely affect our investment income, which could further increase the volatility of our quarterly results. While we believe that the long-term growth trends in our businesses are favorable, our financial results are subject to significant volatility and we are unable to predict our kke performance from quarter to quarter or year to year.
Our investment professionals come from a variety of financial and operational backgrounds, which when combined with the extensive prosectus of our senior principals provide us with a significant competitive advantage.
Any of the foregoing circumstances could have a material adverse effect on our financial condition, results of operations and cash flow. After the completion of the Reorganization Transactions, our business will be conducted orospectus two limited partnerships, which we refer to as the “Group Partnerships,” as described below.
If any of these systems does not operate properly or is disabled, we could suffer financial loss, a disruption of our businesses, liability to our funds, regulatory intervention or reputational damage. Our founders and other principals do not want our people to be advantaged or disadvantaged as a result of their title or tenure at our firm at the time we complete this offering. In this prospectus, we also periodically refer to our “assets under management,” which represent the assets as to which we are entitled to receive a fee or carried interest.
Our asset management activities have benefited from high levels of investments in alternative asset classes in recent years. Additionally, because our private equity approach has produced significant distributions for our fund investors, we believe that it has been an important contributor to the extended relationships that we have developed with our investor base. We will, however, continue to provide the funds with management and other services until their liquidation.
In addition, to support these initiatives, we are currently developing a capital markets business in the United States, Europe and Asia. If legislation were to be enacted by the U. Moreover, with respect to the historical returns of our funds: In many cases, our funds may be prohibited by contract or prospcetus applicable securities laws from selling such securities for a period of time.
Our internal data and estimates are based upon information obtained from investors in our funds, trade and business organizations and other contacts in the markets in which we operate and our understanding of industry conditions. By their terms, such instruments may provide that opo holders are entitled to receive payments of dividends, interest or principal on or before the dates on which payments are to be made in respect of our investment.
In addition, if interest rates were to rise or if market conditions for competing investment products improve and such products begin to offer rates of return superior to those achieved by our funds, the attractiveness of our funds relative to investments in other investment products could decrease. You should rely only on the information contained in this prospectus or in any free writing prospectus we may authorize to be delivered to you.
Our future success and growth depends to a substantial degree on our ability to retain and motivate our principals and other key ipl and to strategically recruit, retain and motivate new talented personnel, including new principals.
Our funds have made investments in companies that we do not control, exposing us to the risk of decisions made by others with which we may not agree. KKR wants to be able to do this itself, and the equity it receives through the IPO will help make this happen, sources say.