Global investment firm KKR has been one of the most active PE firms since the Covid-19 outbreak, deploying around $12.7bn. The PE company has spent a large amount, followed by Silver Lake Partners with $5.9bn in deals.
KKR’s primary acquisitions during this period:
- Viridor Ltd – waste management business from Pennon Group for $5.2bn in mid-March
- Wella and Clairol – beauty brands from US cosmetics company Coty Inc. for $4.3bn in May
- Currently working to take control of Masmovil Ibercom, a Spanish phone carrier, for $3.3bn
According to PE Pitchbook analyst lead, Dylan Cox “The best performing vintages in PE tend to be those that invest during economic downturns”.
In November 2019, KKR closed its latest European PE in a $6.5bn deal. Moreover, in 2017, the firm raised larger Asian and North American PE funds.
The current crisis has left investors with $58bn in uncalled capital commitments and stifled the global financial markets.
According to Partner & Head of KKR EMEA, Johannes Huth, “The dislocation of the financing markets may take one or two years. So we finance deals very conservatively, or entirely with equity, and then when markets are back we refinance.”
KKR manages $207bn assets with different strategies and varied pools of capital to help diversify leveraged buyouts. In addition, the American investment firm has been making deals in public markets, taking stakes in ProSiebenSat.1 Media SE , US Foods Holding Corp, and investing $1.5bn in Indian Jio Platforms.