KKR to ditch its IPO?

Posted Jun 19th 2009 8:30AM by Tom Taulli
Filed under: Private Equity, Initial Public Offerings

Over the past few years, the private equity powerhouse KKR has tried to go public. At first, the firm attempted a typical public offering -- but this failed because of the credit crunch. Then, KKR tried to go public by using a complicated structure by purchasing another entity, KKR Private Equity Investors (KPE), which is listed on the Euronext.

Well, it looks like this plan may also be dead, according to the Financial Times as KKR is considering an approach to purchase KPE without triggering a listing on the New York Stock Exchange.

This seems like a smart move. Even though the equities markets have staged a nice comeback over the past couple months, the investment environment is still tough. Besides, KKR will need to focus on its current portfolio as well as build it new businesses (such as the capital markets division).

Now, this doesn't mean a public-listing is out. Rather, by taking this new approach, KKR will still have the option to be a listed company, although it will probably wait until at least next year.

Tom Taulli is the author of various books, including The Complete M&A Handbook and the founder of BizEquity, a free online business valuation tool for small businesses.

Tags: inthenews, IPO, KKR