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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Investment bankers are often reluctant to make the high-risk, low-return loans.
We pioneered the development of the leveraged buyout and have worked throughout our history on creating innovative financing structures that allow us to compete aggressively for transactions while maintaining ongoing financial flexibility. Because there is significant uncertainty in the valuation of, or in the stability of the value of illiquid investments, the fair values of investments reflected in a fund’s NAV do not necessarily reflect the prices. Unless our Managing Partner breaches its obligations pursuant to our partnership agreement, we and our unitholders will not have any recourse against our Managing Partner even if our Managing Partner were to act in a manner that was inconsistent with traditional fiduciary duties.
Our partnership agreement also does not restrict our Managing Partner’s ability to take actions that may result in our being treated as an entity taxable as a corporation for U. In the past, changing economic and financial conditions have led to variations in ;rospectus level of our investment activities during any particular time period. Our transition to a publicly-traded structure may adversely affect our ability to retain and motivate our principals and other key personnel and to recruit, retain and motivate new principals and other key personnel, both of which could adversely affect our business, results and financial condition.
We believe that we have a number of advantages for sourcing investments kk differentiate our firm. The investments ptospectus our funds are subject to a number of inherent risks. Moreover, we could experience losses on our investments of our own capital as a result of poor performance by the investments we manage. For example, our partnership agreement will provide that when our Managing Partner is acting in its individual capacity, as opposed to in its capacity as our Managing Partner, it may act without any fiduciary obligations to us or our unitholders whatsoever.
And that does cut banks out of one of its main roles in LBOs. We are permitted to repurchase all of the outstanding common units under certain circumstances, and this repurchase may occur at an undesirable time or price.
It is our intention over time to use borrowings in order to finance our business operations as a public company. Private equity firms, which buy and sell companies, typically pay one-third of the purchase price in cash, borrowing the jpo. Furthermore, if, as a result of poor performance of later investments in one of our traditional private equity funds’ life, the fund does not achieve overall profitability, we will be obligated to repay the amount by which carried interest that was previously distributed to us exceeds amounts to which we are ultimately entitled.
This summary highlights information contained elsewhere in this prospectus and does not contain all the information you should consider before investing in our common units. We calculate the amount of assets under management as of any date as the sum of: It is impossible to determine the extent of the impact of any new laws, regulations or kkr that may be proposed, or whether any of the proposals will become law.
We are selling all of the common units in this offering. Our founders will be able to proxpectus the outcome of any matter that may be submitted for a vote of the limited partners.
KKR-A Search Results –
Our earnings and cash flow are highly variable due to the nature of our business and we do not intend to provide earnings guidance, each of which may cause the price of our common units to be volatile. To achieve these results, we recently hired additional investment personnel who have specialized experience in the public equity markets. The time and attention that our principals and other employees devote to assets that are not being contributed to the Group Prospevtus will not financially benefit us and may reduce the time and attention these individuals devote to our business.
We believe that operating as a centrally managed firm that is both global and diversified enhances the growth and stability of our business and helps us make informed decisions across asset classes and geographies.
KKR aims to take role of banks with IPO | Reuters
While we believe that the long-term growth trends in our businesses are favorable, our financial results are subject propectus significant volatility and we are unable to predict our financial performance from quarter to quarter or year to year. Consequently, these regulations often serve to limit our activities.
Among the factors that may affect currency values are trade balances, levels of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation and political developments.
Our employees, including our investment professionals, are led by our founders, Henry Kravis and George Roberts, who are pioneers of the leveraged buyout industry. More recently, through the listing of two of our funds, we have expanded our investor base to include public market investors, such as mutual funds and hedge funds, providing us with an additional source of capital.
In addition, as a prospectuz partnership, we will not prkspectus required to hold annual unitholder meetings. Investors in funds might decline to invest in future funds we raise. While our Managing Partner’s board of directors will consist of a majority of directors who are independent under New York Stock Exchange Propsectus and have a nominating and governance committee, our nominating and governance committee will not consist entirely of independent directors or meet other substantive requirements that would be applicable absent such an exemption, and we ,kr not intend to have a compensation committee.
KKR aims to take role of banks with IPO
An investment in our common units involves risks. Our unitholders also will not have the right to remove our Managing Partner ikr the general partner of our partnership without our Managing Partner’s consent.
We expect such variations to occur in future periods, which may lead to significant volatility in our net income and cash flow from period to period.
This may require some repayment of carried interest previously received. If for any reason these exemptions were to become unavailable to us, we could become subject to regulatory action or third-party claims and our business could be materially and adversely affected. Moreover, with respect to the historical returns of our funds: We recognize earnings on investments in our funds based on our allocable share of realized and unrealized gains or losses reported by such funds, and a decline in realized or unrealized gains, or an increase in realized or unrealized losses, would adversely affect our net income.
Our unitholders do not control our Managing Partner or its board of directors and, unlike the holders of common stock in a corporation, they will have only limited voting rights under our partnership agreement and generally will be unable to influence decisions ipk our business. Although our operations span multiple continents and business lines, we are still managed as one firm with a common culture and are highly focused on sharing knowledge, experience, resources and best practices throughout our offices and across our various investment classes.
Because our earnings and cash flow can be highly variable from quarter to quarter and year to year, we do not prospedtus to provide any guidance regarding our expected quarterly and annual operating results and cash flows. The success of any hedging or other derivative transactions that we enter into generally will depend on our ability to correctly predict market porspectus.
The loss of the services of any of them could have a material adverse effect on our revenues, net income and cash flows and could harm our ability to maintain or grow assets under management in existing funds or raise additional funds in the future. As a result, we are subject to all of the risks and uncertainties associated with the expansion into any new line of business, including the risk that these new business initiatives will not assist us in achieving our objectives.
We believe that competition for investment opportunities is based primarily on the pricing, terms and structure of a proposed investment and certainty of execution.
The KKR Group is considered our predecessor for accounting purposes and its combined financial statements will be our historical financial statements following the Reorganization Transactions and this offering.
Our global and diversified operations are supported by our sizeable capital base and our extensive company, industry, asset-specific and local market knowledge, which allow us to deploy capital across a number of geographical markets in a broad range of companies, industry sectors and asset classes.
The following table presents our summary condensed unaudited pro forma financial data, which has been derived from the unaudited pro forma financial information included under “Unaudited Pro Forma Financial Information. KKR is expanding its debt finance capabilities, but that group is expected to be small, sources say.