KKR to go public after all

July 28, 2008 | By Jim Kim

Kohlberg Kravis Roberts has found a way to go public after all. Recall that its attempt last year was scotched by Blackstone Group's poor aftermarket performance and a sudden downturn in the credit markets. But the storied private equity firm has announced a deal that calls for it to buy its publicly traded affiliate, KKR Private Equity Investors, which is listed on the Euronext in Amsterdam, for about $4 billion. The result is that the entire firm will publicly trade. Its strikes me as a reverse merger of sorts. Unlike the Blackstone Group, no executive will cash out immediately. The New York Times notes all have vesting periods of up to eight years. Seventy-nine percent of shares will stay with executives. This looms as a source of additional capital that its competitors cannot ignore. Others will feel pressure to follow suit.

For more:
- here's the New York Times article