We are patient investors. KKR focuses on building strong, competitive, sustainable businesses—short-term perspectives do not distract us.

Our Approach to Investment.

Although far from formulaic, KKR’s private equity transactions share some basic features. We invest our own equity dollars, and those of our investors, and borrow money for the friendly investment in a company. Once we make an investment, we work with company management over the long term to revitalize the business — making it more productive, more competitive, and more profitable. We do this by streamlining operations, investing in future growth, and growing the top and bottom lines for the benefit of all stakeholders, including employees, customers, suppliers, and the communities in which our businesses operate.

We work closely with the management teams of our portfolio companies and stay deeply involved in the operations of our businesses, providing them with substantial resources over an average investment period of five years or more. We approach our business and our investments as industrialists — and seek to invest in high quality companies that have strong business franchises, attractive growth prospects, leading market positions, and the ability to generate superior returns.

General characteristics of KKR’s private equity investments include:

  • KKR’s investment professionals, senior advisors, and other executives have committed over $1.9 billion to our private equity funds.
  • Senior managers of our portfolio companies generally invest a substantial portion of their own net worth in their business. The best managers, we believe, act like – and are – owners.
  • KKR works with management to determine the optimal capital structure to support a company’s business strategy. A well-conceived balance of debt and equity enables companies to minimize the inherent risks of leverage, to withstand economic downturns, and to invest for growth.
  • Our investment professionals typically serve on the boards of directors of our portfolio companies. They serve as proactive board members, providing strategic insights and access to financial, operational, and other resources.
  • KKR and its portfolio companies are not distracted by the short-term perspectives of the financial markets. We are patient investors who focus on growing and improving businesses over the long term.
  • The beneficiaries of our private equity investments include pension funds, endowments, and foundations, which provide the majority of the capital for our funds. More than 40 state and local public pension plans, representing more than 20 million members, have committed nearly one-half of the capital raised for our recent funds.