Equity Fund IPO Brings In $5 Billion
Kohlberg Kravis Roberts & Co., the world’s biggest buyout firm, Tuesday raised $5 billion in an initial public offering of a private equity fund, luring three times as much money as originally planned, from a wider range of investors.
The firm sold 200 million units in the fund to investors at $25 apiece, a banker familiar with the matter said. The New York-based buyout firm originally sought about $1.5 billion for the fund.
The stock is expected to trade on the Amsterdam exchange.
The 30-year-old buyout firm is tapping a new range of investors with the stock offering, drawing mutual funds and hedge funds. It’s also giving wealthy individuals with less than $25 million access to the firm’s takeovers for the first time.
About 75% of the money raised for the fund will be invested in private equity deals, with the rest to be used for equity and debt securities, according to sale documents.
The cash earmarked for private equity will be used to buy stakes in the firm’s buyout funds and in companies owned by its funds.
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