Private equity firm KKR & Co. L.P. completed its IPO (for more information, go to our 7/15/10 post) and its final IPO prospectus was filed with the. This prospectus is not an offer to sell these securities and it the ability to complete an initial public offering of the portfolio company in which. The IPO profiles may contain historical records. Led by Henry Kravis and George Roberts, KKR is a global alternative asset manager with $ billion in AUM.
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Our partnership agreement will contain provisions that require our unitholders to waive or consent to conduct by our Managing Partner and its affiliates that might otherwise raise issues about compliance with fiduciary duties or applicable law.
KKR aims to take role of banks with IPO
We also manage substantial investments in public equity. The information on our website is not part of this prospectus or the registration statement of which this prospectus forms a part and is not being incorporated by reference into either such document.
The time and attention that our principals and other employees devote to assets that are not being contributed to the Group Partnerships will not financially benefit us and may reduce the time and attention these individuals devote to our business. We have prepared this prospectus using a number of conventions, which you should consider when reading the information contained herein. Moreover, with respect to the historical returns of our funds: During periods of difficult market conditions or slowdowns in these sectors or geographic regions, decreased revenues, difficulty in obtaining access to financing and increased funding costs may be exacerbated by this concentration of investments, which would result in lower investment returns.
Our asset management activities involve investments in relatively high-risk, illiquid assets, and we may fail to realize any profits from these activities for a considerable period of time or lose some or all of the capital invested. We intend to capitalize on the name recognition that we have developed and leverage the strength of our brand as we seek to grow our business.
We believe that if we continue live by these values we will be able to maintain our industry leadership far into the future. Changes to the U. Investors in funds might decline to invest in future funds we raise.
KKR aims to take role of banks with IPO | Reuters
We may experience higher than anticipated operating expenses as well as higher independent auditor and consulting fees during the implementation of these changes and thereafter. The due diligence process may at times be subjective with respect to newly organized companies for which only limited information is available.
If a variation of this proposed legislation or any other change in the tax laws, rules, regulations or interpretations preclude us from qualifying for treatment as a partnership for U. These conflicts include, among others, the following: There is no guarantee that the non-competition, non-solicitation and confidentiality agreements to which our principals will be subject, together with our other arrangements with them, will prevent them from leaving us, joining our competitors or otherwise competing with us or that these agreements will be enforceable pospectus all cases.
When conducting due diligence, we typically evaluate a number of important business, financial, tax, accounting, environmental and legal issues in determining whether or not to proceed with an investment. We are a patient investor and we have consistently approached the management of our investments with the goal of creating value over the long-term rather than realizing short-term gains through rapid dispositions. In addition, the regulatory environment in which our fund investors operate may affect our business.
A disaster or a disruption in the infrastructure that supports our businesses, including a disruption involving electronic communications or other services used by us or third parties with whom we conduct business, or directly affecting our principal offices, could have a material adverse impact on our ability to continue to operate our business without interruption.
Such instruments and kkg may be acquired by our funds through trading activities or through purchases of securities from the issuer. If legislation were to be enacted by the U. Our private equity business is subject to the risk that prospetcus measures might be introduced in other countries in which it currently has investments or plans to invest in the future, or that other legislative or regulatory measures might be promulgated in any of the countries in which we operate that adversely affect our business.
KKR Holdings will ;rospectus hold an equivalent amount of special voting units in our partnership, which will entitle it to cast an equivalent number of votes on those few matters that may be submitted to a vote of our unitholders. Increases in interest rates could also make it more difficult to locate and consummate private equity investments because other potential buyers, including operating companies acting as strategic buyers, may be able to bid for an asset at a higher price due to a lower overall cost of capital.
As a result, those individuals will receive financial benefits from our business in the form of distributions and payments received from KKR Holdings and the appreciation in the value of the Group Partnership units that KKR Holdings owns.
Kkrr ability to recruit, retain and motivate our professionals is dependent on our ability to offer highly attractive incentive opportunities. Our founders will be able to determine the outcome of any matter that may be submitted for a vote of the limited partners. It will be difficult for a unitholder to successfully challenge a resolution of a conflict of interest by our Managing Partner or by its conflicts committee.
In addition, this pro forma financial data has been included for informational purposes only and does not purport to reflect lpo results of operations or financial position that would have occurred had the transactions referred to above occurred on the dates indicated or had we operated as a public company during the periods presented or for any future period or date. The Exchange Act will proepectus that we file annual, quarterly and current reports with respect to our business and financial condition.
KKR wants to be able to do this itself, and the equity it receives through the IPO will help make this happen, sources say. We place significant emphasis on selecting high-quality investments that may be made at attractive prices, working with management to design and implement changes that drive value creation, and making informed decisions when developing investment exit strategies.
We expect such variations to occur in future periods, which may lead to significant volatility in our net income and cash flow from period to period. Appropriately dealing with conflicts of interest is complex and difficult and we could suffer reputational damage or potential liability if we fail, or appear to fail, to deal appropriately with conflicts as they arise.
In particular, we are going public for the following reasons: More recently, our private equity-oriented permanent capital fund and our two credit strategy funds have provided us with more investment flexibility than traditional private equity funds and an additional capital base for making equity investments in public companies. For example, our partnership agreement will provide that when our Managing Partner is acting in its individual capacity, as opposed to in its capacity as our Managing Partner, it may act without any fiduciary obligations to us or our unitholders whatsoever.
We have substantially grown our business, particularly during the past several years, due largely to the successful investment performance of our funds. Our internal data and estimates are based upon information obtained from investors in our funds, trade and business organizations and other contacts in the markets in which we operate and pfospectus understanding of industry conditions.
Our business is materially affected by conditions in the financial markets and economic conditions throughout the world, such as interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws including laws relating to taxationtrade prowpectus, commodity prices, currency exchange rates and controls and national and international political circumstances including wars, terrorist acts or security operations.
If any of these pieces of legislation or any similar legislation or regulation were to be enacted and apply to us, we would incur a material increase in our tax liability, which could result in a reduction prospextus the value of our common units.
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Ultimately, the focus shifts to capitalizing on business opportunities to drive value creation over the long term. Our partnership agreement also contains provisions limiting the ability of our unitholders to call meetings, to acquire information about our operations, and to influence the manner or direction of our management.
We source new investments through our internal deal generation strategies and business relationships with leaders in the business and financial communities. For example, changes in state laws may limit investment activities of state pension plans. Outside of North America, we intend to focus on increasing the amount of private equity investments that we make in Europe and Asia, while building out our debt and public equity operations in those regions.
Further, the exception from corporate treatment does not apply to a partnership that, directly or indirectly, has any item of income or gain including capital gains prospectua dividendsthe rights to which are derived from asset management services provided by an investment adviser, a person associated with an investment adviser, or any person related iop either, in connection with the management of assets klr respect to which investment adviser services were provided.
As we continue to grow, our future performance will depend on both our ability to protect and remain true to our culture and our willingness to hire new people kk different prospeectus experiences.
Our approach leverages our capital base, infrastructure, skill set, global network and industry and operating expertise, which we believe sets us apart from others.
If we were taxed as a corporation, our effective tax rate would increase significantly.