KKR & Co. recently closed its largest-ever European buyout fund, committing $8 billion of capital to invest in businesses in the continent. This figure includes over $1 billion received from KKR’s own balance sheet and employee commitments, providing the firm with ammunition to capitalize on potential deals in what is proving to be a rough market.
Investment in the private equity sector has become harder to find given the current uncertainty and challenging macroeconomic environment, with many institutions keeping their commitments to these alternative assets at arm’s length. This has been further accentuated by existing investors already being heavily allocated to the space before markets began to plunge.
Co-Heads of European Private Equity, Mattia Caprioli and Philipp Freise, are eager to deploy investments despite the volatility. To this end, KKR is looking to partner with family owners, founders, entrepreneurs, and big corporates who need capital and resources to strengthen their companies.
And KKR is well positioned to take advantage of the situation. It was able to take advantage of discounted valuations earlier this year, buying entire companies with equity rather than leveraging any debt. The private equity giant now manages over $165 billion of assets under management globally, of which $28 billion falls into the European division.
Caprioli and Freise are confident EPE can create its best “vintage” in times like these, and that their expertise is precisely what companies need during these turbulent times.
KKR, founded in 1976, is a global company with more than 1,400 professionals operating from 28 countries. It has become a leading global private equity business with expertise in investments across multiple asset classes, including private equity, energy, infrastructure, real estate, growth equity, and credit. It has completed more than $400 billion in private equity transactions since its inception, making it the most successful private equity firm in the world.