KKR IPO

KKR Delays IPO to 2009

Kohlberg, Kravis & Roberts (KKR) is still planning on launching an initial public offering, but it has delayed that IPO to 2009. The worsening financial crisis forced KKR to push back its offering of shares to the public on the New York Stock Exchange.

KKR Private Equity has struggled throughout 2008, posting major quarterly losses. In the three month period ending September 2008, KKR Private Equity lost $649 million in the value of its investments. According to the WSJ:

Those include some of the firm's biggest deals struck at the peak of the buyout boom. It marked down by about 28% in the value of its stake in Energy Future Holdings Corp., the Texas Utility formerly called TXU. That investment is now flat after being marked up. KKR has also now written down its investment in European semiconductor company NXP BV at by 50% of its original cost.

It also saw its minority investment in publicly traded Sun Microsystems drop by $63 million. In January 2007 KKR invested $700 million in the Silicon Valley tech firm, which announced sharp losses last week.

"Some of our investments faced reduced valuations during the third quarter as a result of the extraordinary turbulence in the global capital markets,'' said KKR co-founder George Roberts in a statement.

KKR originally filed to go public in June 2007 just weeks after rival Blackstone Group LP's celebrated IPO. It quickly shelved the offering after the subprime mortgage market began to collapse.

Tags: KKR IPO, KKR Initial public offering, IPO Kohlberg Kravis Roberts, KKR Private Equity, KKR LLC IPO

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