Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

KKR's Bae, Nuttall succeed Kravis, Roberts as co-CEOs

Stock MarketsOct 11, 2021 12:35PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid

By Chibuike Oguh

(Reuters) -KKR & Co Inc said on Monday it has elevated its co-presidents Scott Nuttall and Joseph Bae to co-chief executive officers, succeeding the storied private equity firm's billionaire co-founders Henry Kravis and George Roberts.

The transition has been in the works for years and is unlikely to surprise the firm's investors. KKR had named Bae, 49, and Nuttall, 48, as co-presidents in 2017. KKR said on Monday that Kravis, 77, and Roberts, 78, would remain involved in the running of the firm as executive co-chairmen.

KKR's shares have tripled in value and its assets under management and distributable earnings have doubled since Bae and Nuttall officially became Kravis and Roberts' top lieutenants four years ago, KKR said.

The shares were trading up 2% at $68.80 per share on Monday morning.

"We view the moves as orderly, and would not expect any breakage in assets under management or earnings," Citigroup Inc (NYSE:C) analysts wrote in a note to investors.

Nuttall and Bae will face a challenge replicating the successful working relationship of the two cousins who started KKR 45 years ago. From having their last names as two of the three initials in KKR to fostering a close-knit culture of old-school Wall Street loyalty, Kravis and Roberts have maintained a tight grip on the firm and helped shape the leveraged buyout industry.

The move leaves Blackstone Group (NYSE:BX) Inc CEO Stephen Schwarzman, 74, as the only founder of a major publicly listed private equity firm not to have relinquished the role of chief executive, though his No. 2, president and chief operating officer Jonathan Gray, has been in line for years to succeed him.

In 2018, Carlyle Group (NASDAQ:CG) Inc CEO Kewsong Lee took over from co-founders David Rubenstein, William Conway and Daniel D'Aniello, and Ares Management (NYSE:ARES) Corp CEO Michael Arougheti succeeded co-founder Tony Ressler. Apollo Global Management (NYSE:APO) Inc co-founder Marc Rowan became CEO in March, replacing Leon Black who stepped down in the wake of scrutiny of his ties to the late financier and convicted sex offender Jeffrey Epstein.

Nuttall and Bae both joined KKR in 1996. Nuttall had previously spent less than two years at Blackstone, while Bae had a similarly short stint at Goldman Sachs Group Inc (NYSE:GS)'s principal investments group.

Nuttall helped take KKR public, a process that involved merging the firm with an Amsterdam-listed fund in 2009 and then moving the listing to New York in 2010. He has been a fixture on the firm's quarterly earnings call with Wall Street analysts and also ran KKR's capital markets, insurance, credit, hedge funds and fundraising initiatives.

Bae has been the main driver of KKR's expansion into Asia, making the firm one of the largest U.S. private equity investors on the continent. The Korean-American dealmaker also sat on the investment committees of KKR's global private equity business.

By attracting money from some of the world's largest institutional investors such as pension plans and sovereign wealth funds, KKR grew from a single $30 million fund in 1978 to more than $429 billion in assets under management currently. These assets span private equity, real estate, corporate credit and hedge funds.

KKR first gained widespread recognition through its $25 billion leveraged buyout of RJR Nabisco in 1988, a battle that was immortalized in the bestseller "Barbarians at the Gate". Its current investments include beauty products maker Wella AG and media group Axel Springer SE.

Kravis and Roberts have an estimated net worth of $8.6 billion and $9.1 billion, respectively, according to Forbes.

In addition to its leadership changes, KKR said on Monday it would take steps to eliminate its dual-class share structure. Carlyle was the first major publicly listed private equity firm to do this in 2019, followed by Apollo this year.

KKR said that its common shareholders will be able to vote on a one-to-one basis on all major important issues, including the election of board directors. It added that this will be achieved though a complex web of mergers of KKR entities to be completed by 2026.

KKR's Bae, Nuttall succeed Kravis, Roberts as co-CEOs
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email