We'll likely get more details about the Kohlberg Kravis Roberts "IPO" when the firm files an amendment to its registration filing later this month. So far, people are intrigued, to say the least, about the deal that seems like a reverse merger with its Amsterdam-traded affiliate. The goals are lofty: to appease shareholders of the poorly performing affiliate and raise new capital. TheDeal.com notes that the current terms call for existing KKR PEI shareholders to get 21 percent of the combined company, which should make them feel better about the near 60 percent drop in KKR PEI's share price on Euronext Amsterdam in 2006. Each KKR PEI shareholder will get a contingent value interest three years later if the shares are trading below $22.25, the current net asset value. KKR PEI holders really have little choice but to hope it all works out, or to sell now. I'm guessing more will choose to roll the dice on the new structure. Private equity will come back, we just don't know when.

For more:
- here's the article form TheDeal.com

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