Thursday, 2 April 2015
Last updated 33 min ago
Aug 20 2007 | 1:05pm ET
Private equity giant Kohlberg Kravis Roberts’ publicly-traded KKR Financial Holdings is heading to market after being battered by the downturn in asset-backed securities.
KKR Financial is set to sell $500 million in stock as it seeks to rid itself of its remaining residential mortgage-backed securities portfolio. The firm sold some $5.1 billion in such loans last week, taking a $40 million hit on the deal.
“We are shoring up the company for tougher times,” KKR Financial CEO Saturnino Fanlo said on a conference call. “The cost of obtaining protection is well-purchased insurance for these challenging times.”
San Francisco hedge fund Farallon Capital Management is to buy 16 million shares at $14.40 each—KFN shares were trading at a 52-week-low of $9.39 just last week, but were going for $15.60 in midday trading on Monday. Morgan Stanley is making a similar commitment. Between them, Farallon and Morgan Stanley will pay some $230 million for their shares. Also getting in on the action are Fir Tree Partners, JGE Capital Management, Marsico Capital Management, Oakhill Advisors and Sageview Capital, according to KKR Financial.
Other shareholders also have an opportunity to get in on the deal; their rights to buy new shares expire on Sept. 19. In addition, KKR has made a backstop commitment to buy as much as $100 million in KKR Financial shares if necessary.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…