Was Kravis forced to sell art?

November 5, 2008 | By Jim Kim

How tough is this economy? Well, private equity kingpin Henry Kravis sold an Edgar Degas this week via a Sotheby's auction. The piece fetched just over $37 million, a new record for the French master, notes Breakingviews, which nevertheless recommends that Kravis stick to private equity transaction. The final price works out to annualized return of just 3 percent since 1999, when he snapped up the work for $28 million. Kohlberg Kravis Roberts' 1992 and 2002 funds have fared much better. But you have to wonder why he's selling. I doubt he's having financial difficulties. Perhaps he sensed the Degas market heading south. Does anyone really own art at that level for the sake of art?

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