KKR Partnered with EDF
Private equity pioneer Kohlberg Kravis Roberts and Co (or KKR) was founded by cousins Henry Kravis and George R. Roberts together with Jerome Kohlberg, Jr. They created the company after they left Bear Stearns in 1976. Back then, it was called First Chicago Corporation and it started operations on the 1st day of May that year.
Since the concept of a buyout was new at that time, Henry Kravis and George Roberts made it their mission to educate the financial and business world about it. This eventually earned for them the reputation of being the pioneers in leveraged buyouts.
KKR made its first mark in the buyout scene when it acquired A.J. Industries in 1977 using capital raised by a group of investors. After eight years, KKR sold this investment and allowed their investors to collect huge returns. Over the years, KKR would acquire several more significant investments that were worth millions. Their buyouts generated media interest especially when well-known brands or companies were involved like the Safeway Stores, Duracell, and RJR Nabisco, which KKR acquired for $31.1 billion.
Aside from headline-hugging buyouts, KKR is also acknowledged for its expertise in growing and improving businesses by inculcating values inspired by teamwork, dedication, and discipline.
KKR’s approach to investment relies on a simple concept. Each time the company acquires a company or group, they bring in a team of management experts who strive to make the company thrive, grow, and improve. This way, KKR is able to create and maintain significant shareholder value. KKR’s management teams are composed of only the most knowledgeable and highly motivated individuals who are experts in implementing strategies. This global private equity firm is not afraid to take risks in order to ensure that their shareholders’ interests are well-protected and cared for.
In addition to their work in private equity, KKR is partnered with the Environmental Defense Fund (EDF). Under the Green Portfolio project, KKR and EDF are working hand-in-hand to find ways to study and improve the environmental performance of companies included in the private equity group’s portfolio. Under the project, tools are used to help reduce waste and find solutions for other environmental concerns like the use of toxic substances and greenhouse gas emissions.
Kohlberg Kravis Roberts and Co is the financial world’s agent of change, and it will continue to groom acquired companies into better and more substantial businesses.