News Flash! KKR Going Public Through Reverse Merger

I am putting together a more comprehensive piece, but wanted to get the word out there. Kohlberg Kravis Roberts, the famed private equity firm, featured in the classic book and movie Barbarians at the Gate, is going to go public in a reverse merger, without raising new funds.

Technically they are taking over majority control of an affiliated public entity which trades in Amsterdam. The combined company will re-emerge with a New York Stock Exchange listing. KKR filed over a year ago to do a traditional IPO a la Blackstone, which has both appreciated and seen the frustrations of being public. KKR has now given up on this and are going to complete a reverse merger with this operating business.

This is similar to the approach the New York Stock Exchange itself took in 2006 when it went public through a reverse merger with Archipelago Holdings, Inc., a much smaller public company.

While you wait for more from me, here’s a useful link:

http://www.businesssheet.com/2008/7/kkr-s-reverse-merger-ipo-means-henry-kravis-can-t-cash-out-just-yet

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