KKR & Co. is a step closer to being publicly traded, now that the board of its Amsterdam-traded buyout fun has given the green light. If a majority of the unitholders in KKR Private Equity Investors LP (OTC: KPE), the listed fund, consent, the transaction could be finished by October 1, 2009.
This would result in KKR's finally reaching an exchange. The private equity fund tried to go public via initial public offering (IPO) in 2007, after the Blackstone Group (NYSE: BX) raised $4.75 billion that way, but market conditions scuttled the attempt.
If KKR's acquisition of KPE is sealed, investors in KPE will own 30% of KKR, with no cash exchanged and no new securities issued. KKR investors will not have to liquidate any of their holdings under the arrangement. Close to half of KPE unitholders have indicated support for the deal in the past.
KPE has a net asset value of $3 billion, which translated to around $14.55 to $14.75 per unit, at the end of the second quarter. The result shows a gain of 14% for Q2 (from Q1).
Meanwhile, KKR showed a Q2 profit of $345 million to $375 million, compared to its 2008 loss of $1.2 billion (the first in at least half a decade). Assets under management climbed 7.4% to $50.8 billion in the second quarter.
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