I was off duty last week when KKR filed the S-1 for its un-IPO, and neglected to take an actual look until yesterday. Not too much new info, save for the following fund performance data (through 12/31/09) that I haven’t seen reported elsewhere:
* European Fund (1999): 100% called, 19.9% net IRR
* Millennium Fund (2002): 100% called, 17.7% net IRR
* European Fund II (2005): 100% called, -13.4% net IRR
* 2006 Fund (2006): 74% called, -2.8% net IRR
Since its founding, KKR funds have a 19.2% net IRR.
My first thought upon seeing the numbers was that the 2006 Fund is beginning to look a bit light on dry powder, particularly given that mega-buyout funds from that vintage may need to hold a bit more reserve capital than usual (due to possible refinancings, etc.). Plus, KKR keeps being tied to possible multi-billion take-privates like Harley-Davidson.
So I rang up a few KKR LPs, to see if the firm had begun formal fundraising for its next North American vehicle. The reply is that while KKR has been pre-marketing since last year, no formal PPM is expected until at least Q3. Seems KKR believes most LPs won’t be ready to make major commitments until the new calendar year, plus it would be easier to wait until the NYSE listing is out of the way (probably in early summer).