KKR - KKR & Co. L.P.

NYSE - NYSE Delayed price. Currency in USD
33.11
-0.59 (-1.75%)
At close: 4:00PM EST
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Previous close33.70
Open33.50
Bid30.38 x 900
Ask33.03 x 800
Day's range33.00 - 33.54
52-week range22.01 - 34.14
Volume1,701,336
Avg. volume2,909,320
Market cap28.091B
Beta (5Y monthly)1.79
PE ratio (TTM)9.35
EPS (TTM)3.54
Earnings date27 Apr 2020 - 03 May 2020
Forward dividend & yield0.50 (1.48%)
Ex-dividend date06 Feb 2020
1y target est37.21
  • KKR Bids for Telecom Italia Grid Stake as Spinoff Rekindled
    Bloomberg

    KKR Bids for Telecom Italia Grid Stake as Spinoff Rekindled

    (Bloomberg) -- Private equity giant KKR & Co. submitted an expression of interest for a minority stake in Telecom Italia SpA’s landline network, people familiar with the matter said, in a move that could allow the ex-phone monopoly to achieve the long-planned spinoff of part of its grid.KKR may buy as much as 49% of the landline’s “secondary network” of copper and fiber lines that run from street cabinets to premises, the people said. The whole of this network was valued by the U.S. investment firm at 7 billion euros ($7.6 billion) to 7.5 billion euros, they said.Telecom Italia closed 3.8% higher in Milan, having reversed earlier losses.The company will also team up with KKR in an attempt to buy wholesale-fiber carrier Open Fiber SpA, the people said, asking not to be named because the discussions aren’t public.Chief Executive Officer Luigi Gubitosi plans to discuss KKR’s informal offer at Telecom Italia’s board meeting Feb. 27, the people said. Bloomberg News last week reported that the firm was open to purchasing a minority holding in the division.The plan, which calls for the creation of a separate unit for grid-related assets, signals a return by Telecom Italia to the long-discussed idea of partially spinning off its network. The grid unit would be still controlled by the Italian phone giant, the people said.Gubitosi has since last year been weighing enlisting international funds to help finance a potential network deal with Open Fiber, and to then allow that company to invest in the Telecom Italia landline grid, people familiar with the matter said at the time.The CEO is also looking to boost demand for premium services, work with rivals on network investments to cut costs and spin off non-core assets.Spokespeople for Telecom Italia, KKR and Open Fiber declined to comment.(Adds detail on purchase in second paragraph, updates share price.)To contact the reporter on this story: Daniele Lepido in Milan at dlepido1@bloomberg.netTo contact the editors responsible for this story: Tommaso Ebhardt at tebhardt@bloomberg.net, Jerrold Colten, Jennifer RyanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Here's Why Momentum Investors Will Love KKR & Co. Inc. (KKR)
    Zacks

    Here's Why Momentum Investors Will Love KKR & Co. Inc. (KKR)

    Does KKR & Co. Inc. (KKR) have what it takes to be a top stock pick for momentum investors? Let's find out.

  • Business Wire

    KKR to Present at the Credit Suisse 21st Annual Financial Services Forum 2020

    KKR & Co. Inc. (NYSE: KKR) announced today that Robert Lewin, Chief Financial Officer, and Craig Larson, Head of Investor Relations, will present at the Credit Suisse 21st Annual Financial Services Forum 2020 on Friday, February 28, 2020 at 9:20AM ET.

  • Business Wire

    KKR Prices $500,000,000 of Senior Notes

    KKR & Co. Inc. ("KKR") (NYSE: KKR) today announced that it has priced an offering of $500,000,000 aggregate principal amount of its 3.625% Senior Notes due 2050 (the "notes") issued by KKR Group Finance Co. VII LLC, its indirect subsidiary. The notes are to be fully and unconditionally guaranteed by KKR & Co. Inc. and its subsidiary, KKR Group Partnership L.P. KKR intends to use the net proceeds from the sale of the notes for general corporate purposes.

  • Business Wire

    KKR Forms Life Sciences Tools Platform Gamma Biosciences

    KKR, a leading global investment firm, today announced the formation of a new platform, Gamma Biosciences ("Gamma" or "the Company"), which will operate a portfolio of companies focused on next-generation bioprocessing technologies for the production of advanced biologic therapies. KKR and co-investors have committed to invest $200 million in Gamma. For KKR, the investment is from its Health Care Strategic Growth Fund, which is focused on high-growth companies for which KKR can be a unique partner in helping reach scale.

  • Reuters - UK Focus

    Canada's Trudeau scraps Barbados trip to try to resolve anti-pipeline protests

    Canadian Prime Minister Justin Trudeau has canceled his planned trip to Barbados to help resolve widespread rail disruptions caused by indigenous rights activists opposing the construction of a natural gas pipeline, his office said on Sunday. Indigenous communities across Canada have been blocking some key railway lines for nearly two weeks in protest against the Coastal GasLink pipeline in British Columbia, which has forced Canada's biggest railroad, Canadian National Railway Co , to shut operations in eastern Canada.

  • China’s 58 Home Said to Delay U.S. IPO as Virus Hurts Demand
    Bloomberg

    China’s 58 Home Said to Delay U.S. IPO as Virus Hurts Demand

    (Bloomberg) -- 58 Home, the maid and home-maintenance service owned by China’s Craigslist equivalent 58.com Inc., has delayed its planned U.S. initial public offering, according to people familiar with the matter, as the coronavirus outbreak cripples customer demand.The company’s pre-IPO financing round -- a private fundraising effort that started late last year -- also hasn’t been completed, said the people, who asked not to be named because the information is private. The IPO had been expected to take place in the first half of the year.Shares of 58.com Inc. fell 4.9% in New York trading, the biggest decline since September.The 58 Home’s move adds to the list of IPO setbacks amid the virus outbreak. Restaurant operator Daikiya Group Holdings Ltd. on Wednesday canceled its first-time share sale in Hong Kong, while Chinese biotech firm InnoCare Pharma Ltd. has postponed investor meetings for its planned listing in the financial hub.Read: Virus Hits World’s No.1 IPO Market as Investor Meetings ScrappedThe virus has killed at least 1,355 people in China as of Thursday. People across the nation have been minimizing personal contact for fear of contracting the disease, hurting 58 Home’s on-demand services including part-time cleaners and home handymen.“Obviously, the virus outbreak has affected home and cleaning services -- that entire sector has almost been brought to a standstill,” 58 Home said in a statement. “Our short-term revenue will be affected.”The firm declined to comment on its IPO and fundraising plans.The company added it is facing a severe shortage of maids, and 30 million people in the home and cleaning-services sectors could lose their jobs if the outbreak continues.Workers StrandedMany workers are still stranded in their hometowns, where they traveled for Lunar New Year celebrations, and haven’t been able to return to major cities after the authorities curtailed travel to try to contain the virus.To ensure the health of maids who work on its platform, 58 Home has been logging their travel history, and offering masks and temperature checks.Locally known as 58 Daojia, the company has been seeking funds to bankroll an expansion into China’s competitive online services arena. It was aiming for a valuation of as much as $2 billion in a U.S. IPO.58 Home is one of China’s leaders in helping people connect online with services from flower delivery to home cleaning. Backed by Tencent Holdings Ltd., it’s vying against deeper-pocketed rivals such as Meituan Dianping and businesses operated by e-commerce leader Alibaba Group Holding Ltd. All are targeting a slice of a market for physical, on-demand services that are being disrupted by online technology.58.com’s unit raised its last private funding round in 2015, garnering $300 million from investors including Alibaba, KKR & Co. and Ping An Group. Parent 58.com holds 68.8% of the company’s equity interest but doesn’t consolidate the unit’s financials in its own results, according to its annual filing.(Updates to add 58.com Inc. share price in third paragraph)To contact the reporters on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net;Dong Cao in Beijing at dcao59@bloomberg.netTo contact the editors responsible for this story: Candice Zachariahs at czachariahs2@bloomberg.net, Peter Vercoe, Fion LiFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Telecom Italia Said to Be Near Picking KKR for Fiber Deal
    Bloomberg

    Telecom Italia Said to Be Near Picking KKR for Fiber Deal

    (Bloomberg) -- Telecom Italia SpA is close to picking the private equity giant KKR & Co. to help it acquire wholesale fiber carrier Open Fiber SpA, according to people familiar with the matter.Telecom Italia is choosing the U.S. investment firm because it’s also open to purchasing a minority stake in a portion of the Italian company’s landline network, the socalled “secondary network” of copper and fiber lines running from street cabinets to premises, that’s valued by KKR at 7 billion euros ($7.6 billion) to 7.5 billion euros, said the people, who asked not to be named because the discussions are private.Telecom Italia shares rose as much as 3.2% at the market open in Milan, their biggest intraday gain since November. The larger goal is building a single national network, an approach favored by the Italian government led by Premier Giuseppe Conte.Since last year, Telecom Italia Chief Executive Officer Luigi Gubitosi has considered enlisting international funds to help finance a potential network deal with rival Open Fiber, people familiar with the matter said at that time. Gubitosi is also looking to boost demand for premium services, work along with rivals on network investments to cut costs, and spin off noncore assets.Open Fiber’s investors include Italy’s state lender Cassa Depositi e Prestiti and the country’s largest utility, Enel SpA. Francesco Starace, CEO of Enel, said last week in an interview with Börsen Zeitung that he isn’t going to sell the company’s stake in Open Fiber. In contrast, Cassa Depositi would be open to selling its Open Fiber stake, another person said.Spokespeople for Telecom Italia and KKR declined to comment. Representatives for Open Fiber and Cassa Depositi weren’t available after business hours.Open Fiber reported full-year 2018 revenue of 114 million euros. Its active customers numbered 500,000 at the end of that year, and the company reached more than 5 million households with its fiber network.(Updates with share price in third paragraph)\--With assistance from Liana Baker.To contact the reporter on this story: Daniele Lepido in Milan at dlepido1@bloomberg.netTo contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net;Rebecca Penty at rpenty@bloomberg.netFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters - UK Focus

    EXPLAINER-Why are indigenous groups protesting a Canada gas pipeline?

    Protests broke out in many parts of Canada over the past week, triggered by arrests of dozens of protesters on traditional indigenous land along a route for TC Energy Corp's planned Coastal GasLink pipeline. The demonstrations have disrupted freight and passenger rail and Canadian Prime Minister Justin Trudeau on Wednesday urged protesters to find a quick solution. The flashpoint was police arrests that started last week in northern British Columbia of protesters who oppose the pipeline's construction on traditional land of the Wet'suwet'en indigenous people.

  • KKR Undercuts Wall Street With a Last Minute $1 Billion Loan
    Bloomberg

    KKR Undercuts Wall Street With a Last Minute $1 Billion Loan

    (Bloomberg) -- Barclays Plc had the deal seemingly locked up.Along with a trio of smaller lenders, the bank had agreed to arrange a $1.1 billion loan for ACProducts’ buyout of a unit of rival Masco Corp. While the terms of the financing weren’t quite as good as the kitchen-cabinet maker’s private equity owners had hoped, getting a signed commitment from the banks allowed the company to finally announce the deal in mid-November.Then a couple of months later, something odd happened: a new -- and markedly better -- funding proposal landed in front of the buyout firm’s executives. The terms were so much better, in fact, that they would wind up coming out ahead even though walking away from the Barclays deal would trigger millions of dollars in breakup fees, according to people with knowledge of the matter. They said yes.The last-minute lender wasn’t Bank of America Corp. or JPMorgan Chase & Co. or any of Barclays’ other traditional rivals. It was KKR & Co., a giant in the world of private equity that is normally on the receiving, not giving, end of deals in the $1.2 trillion U.S. leveraged loan market. And the decision to undercut Barclays on the ACProducts loan underscores just how cutthroat KKR and other private-equity firms have become in recent years as they look to play a bigger role in the lending market.Representatives from Barclays, KKR and American Industrial Partners, which owns ACProducts, declined to comment on the transactions.Breakage FeeFor KKR, its credit-investing and debt underwriting business has increasingly put it in competition with established Wall Street players, especially in the business of offering buyout financing. Private capital providers are rushing to build out direct lending operations, looking to capitalize on a shift in global finance many say is just getting started.KKR’s ACProducts deal was especially surprising to market watchers because Barclays already had an established relationship with the company and its sponsor.The bank had lined up about $400 million of financing for a separate acquisition the Texas-based company made about a year ago. While Barclays was forced to take about half of that debt on its balance sheet as syndicated loan buyers balked, the bank had been willing to lend to the company when others wouldn’t. Its M&A advisers also worked with ACProducts on the Masco acquisition.In the end, Barclays didn’t walk away empty handed. In fact, thanks to the so-called alternative-transaction fee, the bank is still getting around half of the money it would have otherwise collected for underwriting the deal -- without having to go out and sell it to investors, one of the people said, asking not to be identified because the details are confidential.The loan arranged by KKR will also repay ACProducts’ existing debt, getting Barclays out of the portion of the original financing it was never able to offload.The KKR package had several advantages over the Barclays-led deal. For starters, it would eliminate the need for a bond, which would have burdened the company with additional disclosures and been more expensive to repay in the event American Industrial Partners wanted to sell the company.It also offered a lower cost of capital compared to the rates at which the banks had agreed to backstop the deal, and didn’t come with the additional investor protections that direct lenders often require, the people said.KKR’s credit division and some co-investors have also agreed to take around three-quarters of the loan themselves, leaving only a small portion of the financing exposed to the ebb and flow of the syndicated market, one of the people said.The unitranche loan maturing in 2025 may pay 6.5 percentage points over the London interbank offered rate and sell at an original issue discount of 99 to 99.5 cents on the dollar. Investors have until Feb. 18 to participate in the offering.(Updates with original issue discount in final paragraph)To contact the reporter on this story: Davide Scigliuzzo in New York at dscigliuzzo2@bloomberg.netTo contact the editors responsible for this story: Natalie Harrison at nharrison73@bloomberg.net, Boris KorbyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters - UK Focus

    Police arrest 33 protesters opposing gas pipe, Vancouver port closure ends

    Police have arrested 33 people on Monday, ending the closure of Vancouver ports in British Columbia province by indigenous protesters opposing the construction of Coastal GasLink pipeline. The arrests resulted from an injunction granted by a British Columbia court on Sunday to restore access to ports in the city. Port Metro Vancouver is one of Canada's biggest ports and police say protesters received several requests and warnings to clear the area prior to the arrests.

  • Business Wire

    KKR Sells Deutsche Glasfaser to EQT and OMERS

    KKR, a leading global investment firm, today announces the signing of an agreement with EQT Infrastructure IV fund ("EQT" or "EQT Infrastructure") and OMERS, for EQT and OMERS to jointly acquire Deutsche Glasfaser ("DG").

  • Here's Why You Should Buy Legg Mason (LM) Stock Right Now
    Zacks

    Here's Why You Should Buy Legg Mason (LM) Stock Right Now

    Legg Mason (LM) appears to be a promising buy, at the moment, riding on inorganic growth and strong liquidity position.

  • Business Wire

    KKR Broadens Technology Investing Talent with Appointment of Rob Salvagno

    KKR, a leading global investment firm, today announced the appointment of Rob Salvagno as co-head of KKR’s technology growth equity business in the Americas, alongside Jake Heller, an experienced technology investor who joined KKR in New York from Spectrum Equity last year. In Europe, Stephen Shanley will continue to lead the team.

  • Business Wire

    KKR-Led Consortium Sells BLK Pyeongtaek Logistics Center to Pebblestone Asset Management

    KKR-Led Consortium Sells BLK Pyeongtaek Logistics Center to Pebblestone Asset Management

  • Business Wire

    Altavair AirFinance and KKR Announce $1 Billion Aircraft Transaction with Etihad Airways

    KKR, a leading global investment firm, and Altavair AirFinance ("Altavair"), a leader in commercial aviation finance, announced today the signing of a definitive agreement to acquire a portfolio of commercial aircraft from Etihad Airways ("Etihad"), the national airline of the United Arab Emirates. The acquisition will be made through aircraft leasing investment platform Altitude Aircraft Leasing, which was established by KKR’s credit and infrastructure funds in 2018 to acquire aircraft serviced by Altavair.

  • Bloomberg

    Darktrace Names New Finance Chief Ahead of Potential Listing

    (Bloomberg) -- Darktrace Ltd. named a chief financial officer as the U.K. cybersecurity company weighs going public.Catherine Graham, previously CFO of online education company 2U Inc., will join Darktrace on Feb. 10, the company said in a statement. Graham has led four initial public offerings, including 2U’s in 2014, and raised more than $200 million in private equity funding, according to Darktrace.Darktrace is setting itself up to be run like a public company, though Co-Chief Executive Officer Poppy Gustafsson said in an interview in November that the firm hadn’t made a final decision about a listing. It raised $50 million for investments in 2018 in a round that valued the company at $1.65 billion, and Darktrace doesn’t need any more funding to keep expanding, Gustafsson said at the time.Founded in 2013 by veterans of U.S. and British intelligence agencies and mathematicians from the University of Cambridge, Darktrace’s technology learns how an organization’s systems and employees usually work to detect irregularities and prevent cyberattacks from spreading. It has headquarters in San Francisco and Cambridge, England, with CEOs in each location -- Gustafsson in the U.K. and Nicole Eagan in the U.S.Darktrace is backed by Invoke Capital, founded by former Autonomy CEO Mike Lynch. A number of Darktrace’s executives are Autonomy veterans, including Gustafsson and Eagan. The company’s investors also include KKR & Co., Vitruvian Partners and Summit Partners.To contact the reporter on this story: Amy Thomson in London at athomson6@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Tony CzuczkaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Business Wire

    KKR & Co. Inc. Reports Fourth Quarter and Full Year 2019 Results

    KKR & Co. Inc. (NYSE: KKR) today reported its fourth quarter and full year 2019 results, which have been posted to the Investor Center section of KKR’s website at http://ir.kkr.com/kkr_ir/kkr_events.cfm.

  • Bloomberg

    KKR-Led Funding Round Gives $100 Million to Startup Policygenius

    (Bloomberg) -- Online insurance startup Policygenius raised $100 million from investors including KKR & Co. and venture capital operations backed by Axa SA, Massachusetts Mutual Life Insurance Co. and Transamerica.The company has annual revenue of $60 million, which is 10 times higher than in 2017, when it last completed a round of fundraising, Policygenius said in a statement Thursday announcing its Series D funding. Policygenius, an online marketplace for insurance, said it plans to use the money for hiring and adding products.Investors have been pouring money into insurance-related startups in recent years, with about $4.36 billion of funds being deployed into insurtech companies in the first nine months of 2019, according to a report from Willis Towers Watson Plc. Outside investors are focusing more on later-stage financing rounds, according to Deloitte.Policygenius, founded in 2014, has been expanding its product offerings and last year added a second headquarters, in Durham, North Carolina, to one in New York. Chief Executive Officer Jennifer Fitzgerald said the company isn’t discussing an exit path through an initial public offering or sale, and is focused on continued expansion.“The company has reached an inflection point where it made sense to throw the proverbial fuel on the fire,” Fitzgerald, a Policygenius co-founder, said in a phone interview. The Series D funding will “really accelerate the very strong growth we were already seeing over the last three years.”With the new investment, KKR’s Allan Jean-Baptiste and Jake Heller will join the Policygenius board. The startup declined to disclosure valuation figures. There are at least 10 insurtech companies, including Lemonade and Hippo, that are considered unicorns, or startups valued at more than $1 billion, according to Willis Towers Watson, which didn’t place a value on Policygenius.To contact the reporter on this story: Katherine Chiglinsky in New York at kchiglinsky@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Daniel Taub, Dan ReichlFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Private Equity Takes on Friendly Activists at Own Game

    (Bloomberg) -- Activist investors have worked hard to improve their image over the past few years. The hooligans of corporate America have swapped saber-rattling for soft power and found that there is still money to be made.Take Starboard Value. The hedge fund sounded loved up last year when it announced a “strategic investment” agreement with Papa John’s International Inc. Within months Papa John’s settled with its obstreperous founder, John Schnatter, enlisted NBA superstar Shaquille O’Neal to join its board, and named a new CEO. For Starboard, nice worked: Papa John’s shares have since soared almost 60%. Yet it’s unlikely the activist would have gotten the chance to show that soft side had it not spent years savaging companies and their directors.The same could be said of Dan Loeb, who once compared the auction house Sotheby’s to an “Old Master painting in desperate need of restoration” but more recently told investors in his Third Point hedge fund that he favors a “collaborative” approach. The numbers tell the story. In 2016, activists waged at least 333 “impactful” public campaigns against U.S. corporations, ranging from drug maker Abbvie Inc. to Yahoo Holdings Inc. Last year, that figure fell by almost a quarter to 258, according to data from research firm Activist Insight.This convivial vibe has caught the attention of other reformed barbarians, who are starting to see opportunities on the activists’ turf. Private equity giant KKR & Co. disclosed this month that it had amassed an active 10% stake in pizza-and-pinball chain Dave & Buster’s Entertainment Inc. -- a rare public investment for the firm.Others are not far behind. Rival buyout firm TPG is raising a new fund to do roughly the same thing, Bloomberg reported this month. One Wall Street rumor could explain why KKR filed now -- it wanted to be the first. Whatever the motivation, the arrival of the private equity giants raises an urgent question for traditional activist investors: what are you for?If you are a hedge fund offering expertise to the board or management, top-tier private equity has more of that; if you’re investing to help sell the company, it’s more persuasive if you also have the money to buy it. In short, private equity seems better equipped than activists for the ‘kindly take our cash and listen to our ideas, we’re experts’ model of investing. This is especially pertinent for those activists who have done most to embrace kindliness. ValueAct Capital, for example, says it invests to “learn from management teams as they innovate, grow, transform business models, reduce cost structures, manage crises and transact M&A”.In one sense, private equity’s entrance validates the maturing of activism: by leveraging their reputations to get the same results playing nice, the once enfants terribles are gaining mainstream imitators. But by attracting larger, more experienced competitors to the field, traditional activists also risk their own demise.Announcing the D&B investment, KKR said upfront that it wasn’t interested in making trouble at the company and wouldn’t be going hostile. Rather, it said it was looking for “constructive dialogue,” perhaps the most hackneyed expression of modern activism.Usually just being friendly doesn’t work for first timers. Even the politest activists tend to get results only because there is a chance they may turn nasty -- they have previous, after all. But KKR is big enough and looks enough like a prospective buyer of D&B to make it compelling.The paradox of friendly activism only works so long as richer, friendlier competitors don’t show up. Now they have and there is reason to think they’ll stay.The buyout industry has struggled to find investments for the vast amounts of capital it has attracted since the financial crisis (the $1.5 trillion of trapped dry powder sitting in private equity funds is an all-time record). As such, it has tended to run hard at strategies where it can eke out a good return, whether that’s buying warehouses, selling insurance, or learning from management teams. If TPG and KKR start winning on the activists’ turf, others will be tempted to follow.None of this should matter to the more riotous activists -- those like Carl Icahn -- who have rejected the vogue for pleasantry as being either less lucrative or less fun, or both. Rather, their reformist peers could be pushed to start fighting again or risk losing their differentiation.In this scenario, private equity emerges into the interesting role of least worst engaged investor. For a board member, KKR filing a 13D may get you, ultimately, to exactly the same place as Icahn would (unemployed) but it won’t cause you ego death.The private equity kings of the 1980s started out as brilliant bruisers who ended up deciding they could make a lot more money being nice. They may be about to deny their disruptive heirs the same opportunity.(Corrects to note in fourth paragraph that KKR is making a rare public investment, not its first public investment)To contact the reporter on this story: Ed Hammond in New York at ehammond12@bloomberg.netTo contact the editors responsible for this story: Aaron Kirchfeld at akirchfeld@bloomberg.net, Elizabeth Fournier, Michael HythaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters - UK Focus

    Calisen aims for market cap of up to 1.4 bln stg in London IPO

    Calisen Group, which supplies smart meters to British households, is aiming to sell up to 408 million pounds ($536.28 million) of shares in its planned initial public offering, banks working on the deal said on Tuesday. Owned by private equity firm KKR, Calisen said it intends to float around 25% of the company on the London stock market at a price range of 225 to 265 pence per share, implying a market value of 1.25 billion to 1.42 billion pounds. Calisen consists of two businesses -- Calvin Capital, through which it owns and manages a portfolio of domestic electricity and gas meters, and Lowri Beck, under which it carries out installation, meter reading and maintenance services on behalf of energy retailers.

  • Reuters - UK Focus

    Investors build war chests to buy bonds of distressed European companies

    Years into a bond market bull-run, investors are banking on a brighter future for funds that buy the debt of financially troubled European companies whose bonds are offering meatier returns because they are more risky. With European economic growth expected to be subdued in 2020, and default rates tipped to rise, investors expect an increase in the number of companies that will struggle to service their debt. Private equity groups and asset managers are creating so-called special situation funds to identify suitable targets for these high-risk - and potentially high-reward - bets.

  • Private Equity's Mountain of Dry Powder Is a Danger Sign
    Bloomberg

    Private Equity's Mountain of Dry Powder Is a Danger Sign

    (Bloomberg Opinion) -- Investors keep flocking to private equity in Asia even though returns are declining. They should take heed: Payouts are likely to get worse from here, rather than better.The hunt for yield in a low-interest world has spurred institutional investors from China Investment Corp. to Japan’s Government Pension Investment Fund to join the rush into the alternative asset class. Private equity firms founded by former veterans of Warburg Pincus and KKR & Co. are seeking to raise at least $4.5 billion for new funds investing in China, Cathy Chan of Bloomberg News reported Thursday, in the latest sign of the region’s burgeoning appetite for nonpublic investments.New York-based KKR, meanwhile, is targeting more than $12.5 billion for its fourth Asian fund, which would surpass the record $10.6 billion raised by China’s Hillhouse Capital Group in 2018.(2) At the end of June, private equity firms in Asia were sitting on a record $361 billion of unspent capital, according to London-based market research firm Preqin.The returns haven’t lived up to the hype. Funds focused on Asia generated an internal rate of return of 12.8% last year, down from 15.5% in 2018, according to Preqin. That’s below what investors could have made outside the region: North American funds chalked up an IRR of 16.4% in 2019 while those centered on Europe returned 18%.Even brand-name private equity shops have sputtered. Hillhouse’s $10.6 billion fund saw its IRR slip by 5.16 percentage points between September 2018 and the third quarter of 2019. Over the same period, the MSCI Asia Pacific Index dropped 3.3%, according to data compiled by Bloomberg. KKR’s two existing Asian mega-funds have had varying success.It’s getting harder for private equity firms to realize returns by selling companies on stock markets as the world wakes up to the reality that not all hot technology startups will be IPO winners. That follows disappointing debuts for high-profile names such as Uber Technologies Inc. and Lyft Inc., along with the collapse of WeWork’s U.S. share offering last year.Much of the private-equity action in Asia has focused on China, which has also had its share of setbacks. OneConnect Financial Technology Co., a unit of Ping An Insurance (Group) Co., cut the size of its U.S. IPO by almost half last month, while Oyo Hotels is firing thousands of staff in China and India. Like WeWork and Uber, both companies are backed by Japan’s SoftBank Group Corp.The U.S.-China trade war has also had a damping effect, with some private equity-invested companies finding themselves embroiled in the tensions. Facial recognition startup Megvii Technology Ltd. delayed its IPO in Hong Kong after it was included in a U.S. blacklist cutting off its access to key American technology. Bytedance Inc., owner of the wildly popular video app TikTok, is now a subject of a U.S. national security review, and is weighing the sale of a majority stake in the unit.All that considered, it isn’t surprising that the value of private-equity backed trade sales dropped 14% to $28.5 billion last year, according to data compiled by Bloomberg, while share sales by private equity owners slumped 27% to $6.4 billion, declining for a third year to the lowest since 2013.While the U.S.-China phase one trade deal signed last week offers some hope of an improvement in conditions, money is still likely to keep piling up in Asian private equity. For one thing, there aren’t many better alternatives. Institutional investors need to diversify: They can’t keep all their funds in U.S. equities, even if these have been going gangbusters for years.But that doesn't mean individuals need to follow suit. Private equity investments are more risky because they are illiquid and take years to pay off. Smart investors should see the ever-growing piles of dry powder as a sign of danger rather than success.\--With assistance from Dani Yang and Irene Huang.  (Corrects to remove non-annualized MSCI index comparisons in the second chart, deletes reference to KKR fund underperforming the market.)(1) The Hillhouse fund is the largest devoted specificallly to Asian investing. Chinese state-backed, or policy, funds such as a $29 billion vehicle created in October to invest in the semiconductor industry are larger.To contact the author of this story: Nisha Gopalan at ngopalan3@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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