Navab, who was speaking with me Thursday at the Buyouts Conference in Dallas, says the firm is seeing “enthusiastic support” for KKR’s planned fundraising.
Navab, in a Q&A with me, wouldn’t give a size for KKR’s expected pool but the firm will raise a large fund. “I don’t think $18 billion will be realistic in this environment,” he says. KKR’s last North American fund raised $17.6 billion in 2006 and is about 70% invested.
On Wednesday, Tony James, COO of The Blackstone Group, said that his firm will close its latest mega fund near $15 billion, up from the previously disclosed $13.5 billion.
Since we were in Texas, I also asked Navab about Energy Future Holdings, the former TXU, which was acquired by KKR and TPG for $45 billion in 2007. The company recently took a third quarter $4.1 billion charge, which was its second multi-billion write-down. In February 2009, Dallas-based Energy Future Holdings announced an $8.9 billion write-down.
Navab says he’s taking a “long-term view” of the company and wishes natural gas prices were trading higher. The company has no covenant issues and “is a buyout work in progress,” he says.