When KKR filed its IPO, the firm mentioned that it was exploring activities beyond its core private equity business.
Well, it's getting started. As pointed out in a recent piece in the Wall Street Journal [a paid service], KKR is edging into the IPO game. That is, the firm is the joint book-running manager on an equity offering for Rockwood Holdings (NYSE: ROC), which is a major specialty chemicals manufacturer. The company plans to issue 10 million shares.
Basically, KKR will help to drum up investors for the offering. No doubt, it's a lucrative business (where commissions have held steady over the years). In fact, KKR is a major shareholder in Rockwood (always nice to double dip, huh?)
Despite the fact KKR is getting competitive with Wall Street investment banks, that's not having much impact on this deal. After all, Goldman (NYSE: GS) and UBS (NYSE: UBS) are participating.
And, with private equity cooling off, it seems KKR has no choice but to expand its business -- turning itself more into a full-fledged financial services firm.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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