KKR Eyes $20B New North America Fund In Tough Market: Report
Portfolio Pulse from Shivani Kumaresan
KKR & Co Inc (NYSE:KKR) is targeting $20 billion for its new North America private equity fund, North America Fund XIV, amid a challenging fundraising environment. The fund aims for a high teens net IRR and plans to deploy 20%-25% of its capital annually. KKR's previous fund achieved a net IRR of 20.5%. The firm's fundraising efforts will test investor confidence, especially compared to Carlyle Group Inc (NASDAQ:CG) and Bain Capital's funds. KKR has raised $180 billion from early 2022 to Q1 2024 and has committed to offering equity to employees of its portfolio companies, leading to higher revenue and lower turnover. KKR stock has gained over 105% in the last 12 months.
June 24, 2024 | 4:17 pm
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NEUTRAL IMPACT
KKR's fundraising efforts will test investor confidence, especially compared to Carlyle Group Inc's 2018 fund, which reported a net IRR of 8%.
While KKR's new fund may draw comparisons to Carlyle Group's performance, the direct impact on CG's stock is less certain.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to KKR stock via Northern Lights Fund Trust IV FMC Excelsior Focus Equity ETF (NYSE:FMCX).
FMCX provides exposure to KKR, which could benefit from the positive news about KKR's new fund.
CONFIDENCE 60
IMPORTANCE 40
RELEVANCE 30
POSITIVE IMPACT
KKR is targeting $20 billion for its new North America private equity fund amid a challenging fundraising environment. The fund aims for a high teens net IRR and plans to deploy 20%-25% of its capital annually. KKR's previous fund achieved a net IRR of 20.5%.
The new fund's target and the previous fund's performance indicate strong potential returns, which could boost investor confidence and positively impact KKR's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to KKR stock via EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF (BATS:LBO).
LBO provides exposure to KKR, which could benefit from the positive news about KKR's new fund.
CONFIDENCE 60
IMPORTANCE 40
RELEVANCE 30