# KKR

KKR & Co. Inc., founded in 1976, is a global investment firm managing $758 billion in assets across asset management, insurance, and strategic holdings, known for landmark leveraged buyouts and AI-related investments.

KKR & Co. Inc., also known as Kohlberg Kravis Roberts & Co., is an American investment firm that serves institutional investors, wealth managers, family offices, and corporations across diverse industries and markets. As of March 31, 2026, KKR managed approximately $758 billion in assets under management (AUM), positioning it among the world's largest alternative asset management firms. The firm operates through three business areas: asset management (covering public and private credit, private equity, infrastructure, real estate, and capital markets), insurance (via Global Atlantic), and Strategic Holdings.

Founded in 1976 by Jerome Kohlberg Jr. and cousins Henry Kravis and George R. Roberts, KKR pioneered leveraged buyouts and has since expanded into a diversified investment platform. Headquartered in New York, the firm maintains offices in over 25 cities globally, including Abu Dhabi, Beijing, London, Mumbai, Singapore, and Tokyo. In 2021, Joseph Bae and Scott Nuttall were named co-CEOs, succeeding the founding partners in day-to-day leadership.

## History and Early Buyouts

While leading the corporate finance department at Bear Stearns in the 1960s and 1970s, Kohlberg, Kravis, and Roberts executed a series of "bootstrap" investments, targeting family-owned businesses facing succession challenges. These early deals included Stern Metals (1965), Incom (1971), Cobblers Industries (1971), and Boren Clay (1973). Tensions with Bear Stearns executive Cy Lewis, who rejected proposals for a dedicated investment fund, prompted the trio to leave and establish KKR in 1976.

KKR's first buyout was of A.J. Industries in 1976, funded by a small group of investors including the Hillman Company and First Chicago Bank. In 1978, after ERISA regulation revisions, KKR raised its first institutional fund with over $30 million in commitments. The Oregon State Treasury became an early public pension investor in 1981, backing the acquisition of retailer Fred Meyer. A notable early deal was the $380 million public-to-private buyout of Houdaille Industries in 1979, which ultimately ended in breakup and job losses despite creditor profits.

## The RJR Nabisco Deal

Kohlberg resigned in 1987 and founded his own firm, Kohlberg & Co., leaving Kravis and Roberts to lead KKR. In 1988, KKR executed the landmark $25 billion leveraged buyout of RJR Nabisco, then the largest in history and remaining so for 17 years. The deal began when RJR CEO F. Ross Johnson proposed a $17 billion management buyout with Shearson Lehman Hutton. KKR countered with a $20.3 billion bid, and after a contentious process, KKR's $109-per-share offer won over Johnson's $112 bid because KKR's offer was fully guaranteed and lacked the management bid's reset risk. The board also had concerns about Johnson's golden parachute. The saga was chronicled in the book "Barbarians at the Gate" and a subsequent television film.

## Modern Expansion and AI Investments

In the 21st century, KKR diversified beyond traditional private equity into credit, infrastructure, and insurance. The acquisition of Global Atlantic, completed in 2024, significantly expanded its insurance arm. Notable recent deals include the 2022 sale of CHI Overhead Doors, recognized as that year's Deal of the Year by Buyouts. KKR has also invested in technology and [artificial-intelligence](https://www.wikiprompt.org/wiki/artificial-intelligence) companies, reflecting a broader trend among private equity firms to capitalize on [generative-ai](https://www.wikiprompt.org/wiki/generative-ai) and [machine-learning](https://www.wikiprompt.org/wiki/machine-learning) innovations. These investments span sectors such as [amazon-web-services](https://www.wikiprompt.org/wiki/amazon-web-services) infrastructure, [openai](https://www.wikiprompt.org/wiki/openai) and [anthropic](https://www.wikiprompt.org/wiki/anthropic) AI models, and semiconductor firms like [amd](https://www.wikiprompt.org/wiki/amd) and [tsmc](https://www.wikiprompt.org/wiki/tsmc), aligning with KKR's strategic focus on high-growth areas.

## Recognition and Awards

KKR has received significant industry recognition. It ranked first on Private Equity International's PEI 300 list in 2022 and 2024, reflecting its scale in private equity fundraising. In infrastructure, KKR won awards from Infrastructure Investor for five consecutive years (2020-2024). These accolades underscore its position as a leading global investment firm, with a track record of innovation in deal-making and asset management.

## Governance and Global Presence

KKR's leadership transition to co-CEOs Joseph Bae and Scott Nuttall in 2021 marked a new era, building on their roles as co-presidents since 2017. The firm's global footprint includes offices in financial hubs across North America, Europe, Asia, and the Middle East, enabling it to serve a diverse client base. KKR's strategic holdings and insurance operations complement its asset management business, providing a stable capital base for long-term investments. As of 2026, KKR continues to adapt to market trends, including the rapid growth of [artificial-intelligence](https://www.wikiprompt.org/wiki/artificial-intelligence) and [deep-learning](https://www.wikiprompt.org/wiki/deep-learning) technologies, positioning itself for future opportunities.

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Source: https://www.wikiprompt.org/wiki/kkr
License: CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/)
Last updated: 2026-09-12T22:22:27.719283+00:00