The New York Times reports that Kohlberg Kravis and Roberts (KKR), the most famous of the private equity firms, is now ready to part with its private status -- a year after it watched Blackstone Group (NYSE: BX) go public and promptly lose half its value.

The Times reports that KKR already has a public affiliate, KKR Private Equity Investors, which is listed on the Euronext in Amsterdam. KKR will buy that for $3.9 billion. This complex deal will value KKR at between $12 billion and $15 billion. The deal will put 21% of the firm's shares in public hands while KKR executives will own the other 79%.

How do we know that KKR's IPO won't lose half its value as Blackstone's did? We don't. But KKR executives won't be able to sell their shares at the offering -- according to the Times, KKR executives will have a "six- to eight-year vesting period compared with Blackstone's three- to four-year period." And once KKR is public, independent directors will control it; whereas inside directors run Blackstone.

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