KKR Aims To Calm Nerves With Unusual Press Release

Mar 17 2008 | 1:15pm ET

In a move aimed at calming jittery investors’ nerves, KKR Private Equity Investors (KPE) has issued a press release stating that it has no exposure to residential real estate, mortgage-backed securities or subprime mortgages.

On a normal day on Wall Street, such a press release would be highly unusual—normally they state what a firm is doing, not what it is not doing. However, given last week’s run on Bear Stearns and the surrounding market turmoil, it seems that even the sturdy ranks of Kohlberg Kravis Roberts & Co. are not above rumor and speculation.

"Over 90% of KPE's $5.8 billion portfolio is invested in the KKR private equity funds and other private equity investments,” said Kendra Decious, chief financial officer, of KKR Guernsey. “KPE does not have any risk from U.S. home loan assets."

The press release states that it was issued in response to inquiries directed to KPE from various investors.

KPE’s investment partnership has drawn in full on its senior secured credit facility in the amount of $1 billion, which is not due to be repaid until its maturity on June 11, 2012. KPE invests at least 75% of its assets in KKR's private equity investments, while up to 25% of its assets are invested opportunistically in other deals identified by KKR.


In Depth

Fund Focus: Asian Frontier Capital Offers U.S. Investors Access To Untapped Markets

Mar 2 2015 | 6:47am ET

Hong-Kong based asset manager Asian Frontier Capital is making a capital raising...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk Management: The Due Diligence Challenge And Branding Opportunity

Mar 2 2015 | 8:41am ET

The hedge fund firms that make it easier for prospective investors to gain comfort...

 

Editor's Note