The ongoing credit turmoil has not been kind to Kohlberg Kravis Roberts. It has reportedly been forced to pull out of several offerings, and a loan offering for Alliance Boots has been delayed. The problem, of course, is the collateralized loan obligation (CLO) market. The market by some measures has come to a near halt earlier. Buyout firms have come to rely on these instruments to finance their deals. But banks are having a hard time finding buyers, and that is threatening to slow the deal machinery at a time when a lot of deals have been inked. So there are signs of tension between KKR and top banks. The rumor mill holds that KKR has balked at upping interest rates and doesn't really care if banks cannot find buyers for CLOs. Recall that KKR is seeking a broker-dealer license.

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