16 June 2019

KKR Seeks Investments as Small as $10K

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Only the wealthiest and most sophisticated investors are allowed to put money into the leveraged buyouts done by Kohlberg Kravis Roberts. But that may be changing.

K.K.R. is working with another firm to allow investors to commit a minimum of just $10,000 for exposure to its private equity funds, according to a filing with regulators on Thursday. The new investment product, subject to approval by the Securities and Exchange Commission, would be the first time K.K.R. had taken smaller investors into its core business of buyouts.

Private equity giants, which typically raise their funds from institutions and ultrawealthy individuals, are trying to gain access to so-called retail investors, who are seen as a vast new source of capital. A rival of K.K.R., the Carlyle Group, introduced a product last year that, in partnership with a third-party firm, allowed investors to commit as little as $50,000 for access to Carlyle’s private equity funds.

Like Carlyle, K.K.R. has structured its product to possibly help it navigate regulatory challenges.

Click here for the full article in the New York Times DealBook.

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