Yes, KKR Is Still “Going Public” in New York

Bloomberg reported this morning that KKR may postpone its planned $500 million flotation on the New York Stock Exchange, due to market volatility. Makes sense, given general market volatility and the particularly harsh treatment of Blackstone and Fortress shares (trading at around $10 and $3 per share, respectively).

What is worth noting, however, is that a share sale postponement has absolutely no impact on KKR’s larger plans to list itself on the New York Stock Exchange (Bloomberg got this correct in its story, but some emailers appear to have stopped after the headline).

Remember, KKR already is publicly-traded in Amsterdam. Moreover, it signed a deal last October with Amsterdam unit-holders, by which KKR promised to relist New York within one year. If it fails to do so, the Amsterdam unit-holders could basically force a transfer on their timetable. In other words, KKR only controls its own destiny through October.

The share sale plan is a relatively recent development, and was expected to happen concurrent with — or shortly after — the New York listing. They are related, but the latter is not dependent on the former.