KKR
Careers at KKR
Mission
KKR provides asset and investment management services to a broad spectrum of clients, which it aims to assist in managing and growing their finances.
Business segments
KKR organises its business activities into four operating segments:
- Private Markets, which manages and sponsors a group of private equity funds and co-investment vehicles that invest capital for long-term appreciation, either through controlling ownership of a company or strategic minority positions, and manages and sponsors a group of funds and co-investment vehicles that invest capital in real assets;
- Public Markets, which comprises the Company’s combined credit and hedge funds businesses, including the activities of its collective investment in transferable securities, and alternative investments funds, which invest capital in leveraged credit strategies, and alternative credit strategies;
- Capital Markets, which supports the Company, its portfolio companies, and third-party clients by developing and implementing traditional and non-traditional capital solutions for investments or companies seeking financing; and
- Principal Activities, which manage the Company’s own assets and deploys capital to support and grow its businesses.
History
KKR was founded in 1976 by former Bear Stearns employees Henry Kravis (“Kravis”) and George Roberts (“Roberts”), who, according to reports, first establish the Company while having dinner at Joe and Rose Restaurant.
KKR subsequently launched its operations, quickly establishing a client base. It completed its first buyout, that of manufacturer AJ Industries, in 1977. In 1982 the first state public pension funds invested in KKR’S private equity funds, and in 1984 the Company raised its first $1 billion institutional fund. In the late 1990s the Company began its international expansion, beginning with the launch of an office in London. It set up KKR Capstone in 2002, and in 2004 established its credit investing platform.
KKR has continued to grow, and is today one of the world’s largest global investment firms. The Company manages investments across multiple asset classes, including private equity, energy, infrastructure, real estate, credit strategies and hedge funds, through an international network of offices across the Americas, Asia Pacific, Europe, and the Middle East. As of 30th June 2016 the Company has $131 billion in assets under management, and has raised more than 30 investment funds since its inception.
KKR trades shares on the New York Stock Exchange under the ticker symbol KKR. The Company has a current market capitalisation of $6.56 billion.
Why work at KKR
Customer Segments
KKR serves a range of clients across its four operating segments. These clients include:
- Individual Clients, including a spectrum of individual investors, notably high-net-worth individuals and family offices;
- Corporate and Commercial Clients, including a range medium and large companies across multiple business sectors, as well as investment companies and funds; and
- Government and Public Clients, including various state-run business, public organisations, and government agencies.
KKR operates principally across markets in the Americas, which accounts for more than half of the Company’s capital invested by private equity funds. The Company, however, serves a global client base across Asia Pacific, Europe and Middle East.
Value Propositions
KKR provides value to its clients in the following ways:
- Its reputation and industry standing, with the Company having established itself as a market leading investment manager, having an established track record of providing asset management services with reliability and integrity;
- Its relationship-driven approach, with the Company seeking to work closely with its clients, and to build and sustain long-term internal and external partnerships, in order to provide a tailored service to its customers;
- Its technical expertise and specialist personnel, with the Company employing highly-trained, specialist staff across its four operating segments, and appointing experienced industry executives;
- Its pursuit of innovative solutions, with the Company committed to finding creative solutions for its clients; and
- Its reach, with the Company operating across a range of international markets, spanning various asset classes and vehicles, and serving clients from around the world.
Channels
KKR operates a website at www.kkr.com, through which it provides information to new and existing customer relating to its operation, products, services and portfolio. The Company also operates international websites in Chinese and Japanese. KKR, however, does not operate an online sales channel.
KKR employs a team of investment professionals that work directly with the Company’s customers in advising and providing asset management services. The Company’s investment staff are organised by operating segment and by geographic location, with the Company seeking to serve clients locally through an international network of offices. This includes a physical presence in the US, Canada, Brazil, the UK, France, Spain, Luxembourg, Saudi Arabia, the UAE, India, Singapore, China, Hong Kong, Japan and Korea.
Customer Relationships
KKR does not provide services to its customers on a self-service basis. Instead, the Company prides itself on working closely with its customers, establishing long-standing relationships and securing recurring business. The Company provides a bespoke service to its clients, with large clients having their own relationships management teams that collaborate with them in identifying and discussing appropriate solutions and opportunities.
KKR provides ongoing support to its clients, who are able to contact the Company’s various offices directly by phone or post. KKR also keeps its clients updated with company developments and trends, including through a range of online resources, such as press releases, news articles, a blog, a video library, and various market insight reports.
Customers are also able to interact with KKR through its social media presence, notably through its Twitter account.
Key Activities
KKR is a global investment firm that manages investments across multiple asset classes, including private equity, energy, infrastructure, real estate, credit and hedge funds.
The Company's provides a range of investment management services to its clients, as well providing capital markets services to both its own portfolio companies and third parties.
KKR’s activities are divided across four business segments: Private Markets, which manages and sponsors a group of private equity funds and co-investment vehicles that invest capital for long-term appreciation; Public Markets, which comprises the Company’s combined credit and hedge funds businesses; Capital Markets, which comprises the Company’s global capital markets business; and Principal Activities, which manages KKR’s own assets and deploys capital across the Company’s businesses.
Key Partners
KKR partners with a range of companies and organisations. These partnerships include:
- Service Partners, comprising a range of companies that provide third-party services to the Company, and to which certain administrative and non-technical functions are outsourced; and
- Strategic and Alliance Partners, comprising a range of companies and organisations across multiple sectors, with which the Company shares tools and resources and participates on joint venture projects.
KKR has recently launched a number of partnerships. It has a partnership with LGC to provide capital and operational support to facilitate KKR’s future growth; a partnership with Google and Recurrent Energy to invest in a portfolio of solar and photovoltaic projects; and a partnership with Chernin Group to invest in media and entertainment companies across Asia. It also has a joint venture partnership with Accel to invest in mid-market software and technology firms.
Key Resources
KKR’s key resources are its funds, its communications and technology infrastructure, its investment and corporate offices, its partnerships, and its personnel. The Company operates a network of more than 20 offices, including in Madrid, Paris, London, Riyadh, Mumbai, Dubai, Singapore, Hong Kong, and Beijing. The majority of these properties are operated under lease.
Cost Structure
KKR incurs costs in relation to the management of its funds, the operation and maintenance of its communications and technology infrastructure, the operation of its international network of offices, the management of its partnerships, and the retention of its personnel.
In 2015, the Company’s largest portion of expenses related to its compensation costs, including the payment of salaries and benefits to the Company’s workforce of 1,200 employees, which amounted to $1.18 billion. The Company accrued general, administrative, and other costs – including the payment of professional fees – totaling $624.95 million, and occupancy costs in the amount of $65.68 million for the year.
Revenue Streams
KKR generates revenue through the provision of various asset management and investment management services, with revenue derived from the collection of various management fees, transaction fees, monitoring fees, and charges. The Company also generates revenue through its investment activities, as well as through the accrual of interest.
In 2015 KKR generated total segment revenue of $2.51 billion, down marginally on the $2.96 billion recorded in segment revenue by the Company in 2014. The majority of this revenue was generated by the Company’s Private Markets segment, notably the segment’s performance income, which accounted for $1.88 billion in segment revenue. Public Markets generated $280.25 million, Capital Markets generated $191.47 million, and Principal Activities generated $153.51 billion.
Business model of KKR
Henry Kravis (Co-Founder, Co-Chairman and Co-Chief Executive Officer)
Kravis co-founded KKR is Co-Chairman and Co-Chief Executive Officer of KKR, and has serves as member of the Company’ senior leadership team since co-founding the Company in 1976. Kravis also serves on the boards of First Data Corporation, and ICONIQ Capital, and is a director, Chairman Emeritus or trustee of several cultural, professional, and educational institutions, including The Business Council, Claremont McKenna College, Columbia Business School, Mount Sinai Hospital, Partnership for New York City, Partnership Fund for New York City, and Rockefeller University.
Kravis holds a bachelor’s degree from Claremont McKenna College and a master’s degree in Business Administration from the Columbia Business School.
George Roberts (Co-Founder, Co-Chairman and Co-Chief Executive Officer)
Roberts co-founded KKR in 1976 and has since held a number of senior leadership positions at the Company. He currently serves as the Company’s Co-Chairman and Co-Chief Executive Officer.
Roberts also serves on the Company’s regional Private Equity Investment and Portfolio Management Committees, and has served as a director or trustee of cultural and educational institutions, including Claremont McKenna College. He is the founder and Chairman of San Francisco-based non-profit organisation REDF.
Roberts holds bachelor’s degree from Claremont McKenna College and a Juris Doctor degree from the University of California Law School.
William Janetschek (Executive Committee Member and Chief Financial Officer)
William Janetschek (“Janetschek”) has served as Chief Financial officer at KKR since 2014. He also serves as a member of KKR's Valuation Committee and the Firm's Risk Committee.
Janetschek joined KKR in 1997, and has since served in a variety of positions at the Company, before assuming his current role. This includes spells as Chief Financial Officer and Principal Accounting Officer at KKR Management, and as Chief Financial Officer and Principal Accounting Officer of KKR Guernsey GP Limited.
Prior to joining KKR, Janetschek served for several years as a Tax Partner at Deloitte and Touche. He holds a bachelor’s degree from St. John's University and a master’s degree from Pace University.
