KKR co-founders pass the baton to Joe Bae, Scott Nutall, HIG sells Trace3 to American Securities

KKR reshuffles its C-suite as Henry Kravis and George Roberts step down as co-CEOs.

Morning, hubsters!

KKR has unveiled succession plans at the private equity giant, appointing Joe Bae and Scott Nutall as co-CEOs. Effective immediately, the duo replaces Henry Kravis and George Roberts, who as first-cousins co-founded KKR in 1976 alongside Jerome Kohlberg.

The billionaire co-founders, both in their late 70s, are set to remain actively involved as executive co-chairmen of KKR’s board of directors.

Bae and Nuttall have been at KKR since 1996, and since July 2017, have been co-presidents and Co-COOs of KKR. The firm since that time has witnessed assets under management, book value, total distributable earnings doubling and KKR’s stock price tripling, KKR said.

Bae, among other things, is credited for architecting KKR’s expansion in Asia, while Nuttall’s contributions have included leading major strategic development initiatives such as KKR’s public listing.

The firm also announced a series of transformative structural and governance changes. Read PE Hub’s brief on KKR’s succession plans.

Sold: HIG Capital sold Trace3 to American Securities, concluding a Guggenheim Securities sale process for the IT services provider that kicked off earlier this year.

Headquartered in Irvine, California, Trace3 provides IT solutions and services to over 2,500 commercial and enterprise clients across the US. include advanced cloud technologies, data center designs, security strategies, and business intelligence solutions.

The transaction is presumably a sizable one given the company’s financials. PE Hub wrote in May, ahead of first round bids, that Trace3 generated approximately $100 million in EBITDA.

From a top line perspective, Trace3 under HIG tripled revenues to $1.4 billion, becoming a national player while broadening its managed services offering, the firm said Monday. HIG, a Miami-headquartered PE firm, originally backed Trace3 in June 2017

Read more on PE hub.

That’s it for me! Have a great week ahead. Reach me with your tips, feedback or whatever you want at springle@buyoutsinsider.com.