Yesterday, private equity titans Kohlberg, Kravis, Roberts & Co. seemed to back away from a New York Stock Exchange listing. But according to the PEHub blog, it’s quite likely Henry Kravis’s buyout shop will follow BlackStone Group (BX) and Fortress Investment Group (FIG) in becoming a publicly traded company.
KKR yesterday said it would delay listing its shares on the NYSE, while going ahead on a merger with KKR Private Equity(KPE.AS), or KPE, KKR’s Dutch affiliate. However, terms of the deal apparently allow KKR to go ahead with a NYSE listing sometime within the next 12 months, and PEHub writer Dan Primack thinks a listing could happen as soon as next spring.
Primack observes that investors in KPE constitute some of the largest U.S.-based investors, and “They’re in it for the New York listing,” in his view. Hence, there is “No way they’d let the 12-month deadline slide.” Primack says sources tell him the combined KKR-KPE would be worth $6.5 billion to $7.5 billion, which is well down from the $16 billion to $18 billion KKR at one time thought such as tie-up could be worth.
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