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Wednesday, April 11, 2007

Who is behind Private Equity?

News about private equity firms and their buyouts increasingly make it onto the cover of the FT. But who is behind these groups?

Kohlberg, Kravis and Roberts is one of the largest groups. They currently try to acquire the pharmacist Boots. KRR was founded in 1976 by Henry R. Kravis and cousins Jerome Kohlberg, Jr., George R. Roberts, all of whom had previously worked together at Bear Stearns. KKR has been the largest and most active participant in the buyout market since the mid-1970s. Since its inception, KKR has completed more than 150 transactions with an aggregate enterprise value of over $279 billion. They invented leveraged buyout which occurs when a financial sponsor gains control of a majority of a target company's equity through the use of borrowed money or debt.

Another firm is TPG Capital, L.P. (formerly Texas Pacific Group) which was founded by David Bonderman, James Coulter and William S. Price in 1992.

Upcoming deals can be seen on http://www.privateequityonline.com/

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