Strategies of Banks and Other Financial Institutions

Cases on Private Equity Firms

7.1 Kohlberg Kravis Roberts

Kohlberg Kravis Roberts (KKR) is a leading global investment firm that has executed many large and complex global private equity transactions. Founded in 1976, KKR’s success was built around the single core concept of partnership. In 1977, the firm made its first acquisition, valued at $26 million. In 1979, KKR made the significant buyout of Houdaille Industries, a mid-sized publicly traded company for $380 million. In the 1980s, many of the well-known retail and consumer brands, such as the Safeway Stores (largest food retailer), Duracell (manufacturer of alkaline batteries), and RJR Nabisco (a global leader in consumer products) became part of the KKR portfolio. In 1989, KKR bought ...