KKR - KKR & Co. Inc.

NYSE - NYSE Delayed Price. Currency in USD
24.52
-0.04 (-0.16%)
At close: 4:02PM EDT

25.16 +0.64 (2.61%)
Pre-Market: 7:15AM EDT

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Previous Close24.56
Open24.16
Bid23.51 x 800
Ask25.49 x 1400
Day's Range23.32 - 24.87
52 Week Range15.55 - 34.14
Volume4,549,014
Avg. Volume4,402,596
Market Cap20.803B
Beta (5Y Monthly)1.73
PE Ratio (TTM)6.93
EPS (TTM)3.54
Earnings DateApr 27, 2020 - May 03, 2020
Forward Dividend & Yield0.50 (2.04%)
Ex-Dividend DateFeb 06, 2020
1y Target Est33.36
  • Reuters

    Japan's Mitsubishi, Chubu Elec completes $4.5 bln purchase of Eneco

    Japanese trading house Mitsubishi Corp and Chubu Electric Power said on Wednesday that they have completed a 4.1 billion euro ($4.5 billion) acquisition of Dutch energy firm Eneco on March 24. In November, the Japanese companies were selected as the preferred buyers in a bid for the Dutch company, beating rival bids from Shell and private equity firm KKR. Eneco was owned by 44 Dutch municipalities and had a focus on renewable energy.

  • Reuters

    BlackRock no longer in the race for ADNOC's gas pipeline assets - sources

    MILAN/DUBAI, March 23 (Reuters) - BlackRock Inc has dropped out of the race to become an investor in Abu Dhabi National Oil Co's (ADNOC) natural gas pipeline assets, two sources familiar with the matter said. BlackRock, along with buyout firm KKR & Co, last year bought a 40% stake in ADNOC Oil Pipelines for $4 billion, and was also looking at a deal involving ADNOC's gas pipeline infrastructure, the sources said.

  • Bloomberg

    Ackman, Cohodes Warn of Private Equity Pain in Shakeout

    (Bloomberg) -- As the panic spurred by the coronavirus erases trillions from equity markets, whipsaws bonds and crushes energy prices, there may still be another shoe to drop.Short-seller Marc Cohodes is warning that the resulting near freeze in leveraged lending will punish private equity funds that own highly indebted companies. The former hedge fund manager, who now invests his own money, is betting against the industry, which he says is headed for losses as firms mark down holdings.“They don’t own good assets, they’ve overpaid for things, thrown an awful lot of leverage on them,” said Cohodes, who spent much of his career exposing companies suspected of fraud. “That game is in the process of ending and when it ends, and people can see through it all, they’ll say this marked the end of private equity and the excessive use of leverage.”The market for leveraged loans -- often used to finance buyouts -- has ballooned over the past decade amid record-low interest rates. But the Covid-19 pandemic has triggered fears of a global recession and virtually shut the markets for such loans and high-yield bonds. Multibillion-dollar loan deals have been canceled, leaving companies unable to refinance.Worries are growing because of the quality of some borrowers. A Morgan Stanley report in November found that the almost 60% of companies acquired in leveraged buyouts had debt loads above six times earnings before interest, taxes, depreciation and amortization, compared with 51% in 2007.Investor Bill Ackman also warned of risks to private equity if the crisis persists.“The airline industry goes bankrupt, the hotel industry goes bankrupt, the restaurant industry goes bankrupt -- and by the way, private equity goes bankrupt,” the founder of Pershing Square Capital Management told CNBC on Wednesday. “Blackstone is a fabulous private equity firm, KKR, they do a tremendous job. But every one of their companies has a lot of leverage. Every one of their companies goes bankrupt if this thing rolls out over 18 months.”Junk Debt Market Freeze Risks $35 Billion Banker HeadacheStill, the fund manager has been buying shares of Blackstone Group Inc. amid the sell-off, Bloomberg reported.Samir Parikh, a partner at hedge fund Islet Management, said many private equity-backed companies refinanced debt over the past year, so they won’t need imminent financing. Islet is wagering on the sector.How things shake out for indebted companies depends on the course of the virus outbreak. In the short run, banks may ensure access to revolving credit lines and increase them or allow some borrowers to switch to payment-in-kind to preserve cash. Private equity-backed companies could also draw on sponsors for help, but as liquidity issues proliferate more borrowers may eventually default.Last year, Omega Advisors founder Leon Cooperman cautioned that private equity returns can’t last with higher borrowing costs. Falling rates over the past decade were the main reason leveraged buyouts generated high exit multiples, he said.“I think it’s a scam personally,” the billionaire said. Returns on “the large deals have been aided and abetted by the enormous decline in interest rates.” He later said that while the industry isn’t an actual scam, its high fees and lengthy lock-ups don’t appeal to him.For Cohodes, the fallout could be a boon for long-short hedge funds once clients start moving their cash out of private equity and demanding skilled stock-pickers. He’s hopeful that in a few months, investors will begin putting money to work.“Most people are so focused on what’s right in front of them that they can’t look forward,” he said. “If the world doesn’t come to an end, if you can find good companies in the Russell index that are down 35%, you should be able to make some money.”(Updates with Cohodes’s comments in last two paragraphs.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    Italian car parts maker Marelli to halt production in Europe next week

    Italian car parts maker Marelli said on Friday it would suspend most of its European plants next week in response to the spread of the coronavirus. The decision comes came as the worsening virus situation has pushed many of Marelli's clients to halt production in Europe, governments to strengthen measures and with the aim of protecting workers' health, the company said in a statement. The company - which combines former Fiat Chrysler unit Magneti Marelli and Japan's Calsonic Kansei and is controlled by U.S. investment firm KKR - last week suspended Italian operations until March 27.

  • KKR Defies Market Gloom With Biggest U.K. Deal Since Virus
    Bloomberg

    KKR Defies Market Gloom With Biggest U.K. Deal Since Virus

    (Bloomberg) -- KKR & Co. pulled off one of the biggest deals since the coronavirus pandemic roiled markets by agreeing to buy Pennon Group Plc’s waste-management arm Viridor Ltd. for 4.2 billion pounds ($4.9 billion) including debt.The deal will result in net cash proceeds of about 3.7 billion pounds to Pennon, with an additional consideration of 200 million pounds contingent on future events, Pennon said in a statement on Wednesday. The buyout firm’s infrastructure arm beat out several private equity and infrastructure funds with a fully financed offer early in the auction, said people familiar with the matter, who asked not to be identified because that information was private.Pennon shares fell 5.4% at 9:26 a.m. Thursday in London, valuing the firm at about $5.2 billion. The benchmark FTSE 100 Index rose 0.2%. The sale of Viridor comes as dealmaking globally is threatened due to plunging stock markets and tightening credit conditions due to the growing health crisis. The transaction is also a sign that private-equity firms are still willing to deploy their capital on stable assets with predictable cash flows. Blackstone Group Inc. agreed to buy the iQ Student Accommodation business from Goldman Sachs Group Inc. and the Wellcome Trust for $6 billion last month in the largest-ever private real estate deal in the U.K.Pennon invited non-binding bids for Viridor last week but KKR unexpectedly made a formal offer with committed financing right off the bat, leading to a quicker-than-expected agreement, the people said.The buyout firm had initially approached the company to buy the unit last year, prompting Pennon to launch a formal sale process, the people said. KKR was keen to do the deal because the firm didn’t have a waste management business in the U.K. and found the sector to be attractive given the rising focus on green energy, the people said.Viridor had drawn takeover interest from several suitors including KKR after Pennon kicked off a sale process, people familiar with the matter said in February. At about $5 billion, the deal is the biggest carveout of a division from a publicly traded U.K. firm since August 2018, when Whitbread Plc agreed to sell its Costa Ltd. cafe chain to Coca-Cola Co., according to data compiled by Bloomberg.The Viridor division works with more than 150 local authorities and major corporate clients and has more than 32,000 customers across the U.K., according to its website. It provides recycling, renewable energy and waste management services.Pennon intends to use proceeds to pay down debt and also return cash to shareholders, it said. It is also planning to announce a new dividend policy for the period from 2020 to 2025 when it reports full-year results on June 4.Barclays Plc and Morgan Stanley advised Pennon on the sale while RBC Capital and UBS Group AG worked with KKR.(Updates with Thursday share movement in third paragraph. An earlier version of this story corrected Pennon’s market cap at the Wednesday close)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Private Equity Has the Cash, and It Is King
    Bloomberg

    Private Equity Has the Cash, and It Is King

    (Bloomberg Opinion) -- Private equity firms, sitting on a record $388 billion of dry powder in Asia, may be about to get their reward for patience. Cash is king as corporate finances are stretched by the coronavirus outbreak. Having sat on their hands for much of the past year in protest at unappealing valuations, the virus-induced stock market meltdown is creating a potential parade of bargains. Blackstone Group Inc.’s reported plans to acquire Hong Kong-listed property company Soho China Ltd. may be just the start.High valuations are the number one complaint of private equity firms devoted to the Asia-Pacific region, according to a Bain & Co. report last week. Prices hadn’t budged significantly before the outbreak even as economic growth slowed in China, the region’s top destination for such investments. That’s because owners and entrepreneurs have been spoiled for choice: More than 3,000 private equity firms are jostling to find opportunities in Asia.Deal prices eased only slightly last year, to a median ratio of 12.9 times enterprise value to Ebitda, from 13.3 times in 2018. Valuations remain above levels before 2017, according to Bain.The MSCI Asia-Pacific Index has slumped 23% this year, opening up potential buyout targets in the public markets and dragging valuations of unlisted companies down in its wake. While tightening dollar liquidity threatens the financing that private equity firms need to make deals work, shrinking availability of credit may also weaken the reluctance of startup founders to yield control, which has been a hindrance to transactions, particularly in Southeast Asia.Another positive from the market shakeout is a possible easing in the pace of activity by Masayoshi Son’s SoftBank Group Corp. That would come as welcome relief to fund executives who see the conglomerate’s $99 billion Vision Fund as pumping up private valuations and crowding out other investors. With SoftBank shares having fallen more than 40% in Tokyo from its February high, Son’s focus has switched to shoring up his own company’s valuation via a $4.8 billion share buyback announced last week. SoftBank is also grappling with challenges at portfolio companies such as WeWork and Indian startup Oyo, as my colleague Tim Culpan has noted.Not all private equity firms are positioned to profit from the rout. The biggest are in the strongest position. New York-based Warburg Pincus, for instance, raised $4.25 billion for a China-Southeast Asia fund in five months last year, exceeding its target. By contrast, smaller and newer funds spent an average of 22 months on the road and raised only 60% of their goals, according to data from Bain and Preqin.Baring Private Equity Asia and TPG Capital are examples of other firms with well-known names and track records that have successfully raised multibillion-dollar funds. Blackstone closed a $7.1 billion real estate fund last year that was the biggest ever in that sector. And few would bet against KKR & Co. being able to complete a $12.5 billion fundraising that it started for its fourth Asian buyout fund in November. Meanwhile, sovereign wealth and pension funds started playing safe with their private equity investments a couple of years ago, leaving them with plenty of firepower. The divergence between strong and weak will widen. Less financially robust private equity firms may struggle to rescue cash-strapped portfolio companies as credit tightens. Even bigger players are likely to reassess previously hot industries or regions. Money has poured into Vietnam and Southeast Asian neighbors on bets that they would benefit as the trade war forced a supply-chain shift out of China. The pandemic has put that thesis in doubt. “People are questioning the whole Southeast Asia-China nexus as a theme,” said Winston Ma, a former executive sovereign wealth fund at China Investment Corp. who’s now an adjunct professor at New York University.Chinese consumer companies, a magnet for private equity money in the past couple of years, are also likely to suffer a loss of favor. Efforts to curb the coronavirus prompted restaurant chains from McDonald’s Corp. and Yum China Holdings Inc.’s KFC to shut outlets. While giants such as Citic Capital Holdings Ltd. and Carlyle Group LP, which bought most of McDonald’s China business in 2018, can ride out closures, other restaurants may not be so lucky.Cash alone won’t guarantee success. As long as the pandemic lasts, it will be difficult for private-equity executives to visit potential investments, putting a damper on due diligence and limiting dealmaking. For every great deal made by a cash-rich private equity firm during a financial crisis, there are others that came a cropper. Finding the genuine bargains amid the rubble will be key. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Business Wire

    Optiv Security Expands Canadian Presence with In-Country Security Operations Center

    Optiv Security, a security solutions integrator delivering end-to-end cybersecurity solutions, today emphasized its continued investment in securing Canadian enterprises and government entities with the grand opening of its Mississauga-based security operations center (SOC). The center brings together a diverse team of cybersecurity experts – SOC engineers, developers, and threat analysts – to provide local, real-time, 24/7 threat monitoring and remediation resources for Canadian clients.

  • Now with another Amazon tower, KKR's Seattle-area holdings exceed $1.6B
    American City Business Journals

    Now with another Amazon tower, KKR's Seattle-area holdings exceed $1.6B

    With Amazon planning to move in, the empty office Tower 333 in Bellevue has traded hands for $401.5 million. The new owner, KKR & Co., of New York City, now owns two Amazon-leased towers — Summit III and Tower 333 — across the street from each other in Bellevue, where Amazon has said it expects to add 15,000 employees in the next few years. The deal underscores what a draw Bellevue has become among real estate investors and developers, who in recent months have paid about $119 million for two large development sites — one on 108th Avenue Northeast kitty-corner from Tower 333 and the other on Northeast Eighth Street.

  • Reuters

    RPT-NEWSMAKER-Zhang Yiming, founder of TikTok owner ByteDance, gears up for the global stage

    BEIJING/HONG KONG, March 13 (Reuters) - The founder of China's ByteDance, owner of the wildly successful TikTok app, has for years aspired to make ByteDance the first Chinese firm to rival U.S. internet giants on the global stage. On Thursday Zhang Yiming made a key move to achieve that. Creating new leadership positions for ByteDance's China business, Zhang said in a letter to employees he would now focus on global expansion and fresh initiatives such as education.

  • As Virus Hits Travel Market, a Startup Seeks Survival Tips
    Bloomberg

    As Virus Hits Travel Market, a Startup Seeks Survival Tips

    (Bloomberg) -- From his office inside a converted century-old Berlin power station, Johannes Reck watched the bookings at his travel company evaporate.Having built GetYourGuide over a decade from his student dorm in Zurich into one of Europe’s most highly valued startups, Reck and his three co-founders were accustomed to challenges. But what was unfolding here, with the novel coronavirus spreading across the globe, was beyond anything the team had witnessed. Bookings were down by almost half, and Reck realized that he could do with some help.“This is the most severe shock that I’ve seen in the last 10 years,” Reck said. “The irony of Europe is that we had a fantastic start to the year, consumer sentiment was high, and then it fell off a cliff a few days ago.”Reck picked up the phone last week to get advice from an unlikely source: Kees Koolen and Arthur Kosten, the founders of Booking.com, one of his biggest rivals, but also a business that’s been battle-hardened by shocks like the 9/11 terrorist attacks and the 2008 financial crisis.The duo gave the startup entrepreneur some valuable tips, Reck, 35, said in an interview in the red-brick headquarters. Among their advice was to keep a close eye on the data, focus on core activities, but also not to retrench too aggressively because that makes rebuilding harder once the crisis eases.Koolen was a GetYourGuide board member for four years from 2014, according to his LinkedIn page.Watershed MomentReck is one of a young generation of entrepreneurs who have enjoyed the fruits of a decade-long bull market unencumbered by severe external shocks. But the spreading coronavirus has become a watershed moment, particularly for consumer-facing industries like travel and hospitality, because of sweeping lockdowns and travel restrictions.An airline trade group said last week that the industry will lose as much as $113 billion in sales because of the virus. On Monday, Booking.com withdrew its forecast, citing the worsening impact of the virus on travel.That was before Italy went into a country-wide quarantine and U.S. President Donald Trump closed the borders to most Europeans for 30 days on non-Americans who have spent the prior two weeks in Europe.It’s a tough test for a company founded by Reck in 2009 with three former classmates. In May, SoftBank Group Corp.’s Vision Fund led a $484 million investment, valuing the company at well over $1 billion, a person familiar with the investment said at the time. The company, with more than 600 employees, also counts Singapore’s state-owned investment firm Temasek and KKR & Co. among its investors.Possible OpportunitiesGetYourGuide’s platform allows travelers to book tours and experiences online from operators on the ground in the destination city. Reck said because of his Asian investors, he and his team were made aware of the impact the virus would have before it hit Europe. So long as the company can maintain and improve the customer experience in the downturn, it will thrive when the market picks up again, the CEO said.“We had roughly two months to prepare in Europe and had a plan in place for the virus hitting here,” Reck said. The response includes strengthening customer service and reducing costs like advertising and marketing spend, consulting fees, and slowing down on hiring. The company is also looking ahead to further growth.“We’ve not been acquisitive at all but it’s something we’re reviewing as we speak,” said Reck. Before the virus hit, GetYourGuide had already looked to Asia for potential takeover targets, according to the CEO.Italy as a travel destination is important to GetYourGuide, but as a global market player, Reck said the company is spread out enough so that no single target market has a majority share. And Reck said he thrives in moments of crisis because they remind him of the early startup days.“This is how we grew the business,” he said. “It feels like we’re a startup again, with our back to the wall and we really need to deliver”.Reck said he’s optimistic that GetYourGuide will weather the storm given his company’s lower fixed costs and support from deep-pocketed backers.At the same time, he’s not taking any chances. On March 11, GetYourGuide sent out a company wide memo to all its employees in Berlin: an order to work from home to avoid a spread of the virus.(Updates with Koolen’s board member role in fifth parapraph)To contact the reporters on this story: Sarah Syed in London at ssyed35@bloomberg.net;Tom Giles in San Francisco at tgiles5@bloomberg.netTo contact the editors responsible for this story: Dinesh Nair at dnair5@bloomberg.net, Benedikt Kammel, Paul SillitoeFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Business Wire

    KKR Announces Intra-Quarter Monetization Activity for the First Quarter

    KKR today announced a monetization activity update for the period from January 1, 2020 through March 12, 2020. Based on information available to us as of today, with respect to the period through March 12, 2020, KKR has earned gross realized carried interest and total realized investment income of approximately $490 million. This is driven primarily by strategic and secondary sale transactions that have closed quarter to-date, as well as dividend and interest income from KKR’s balance sheet portfolio.

  • Attendee of World’s Top Buyout Event Contracts Coronavirus
    Bloomberg

    Attendee of World’s Top Buyout Event Contracts Coronavirus

    (Bloomberg) -- A Berlin private equity conference last month that attracts thousands of financiers -- including billionaire buyout heavyweights Leon Black and Stephen Schwarzman -- was also attended by a person who has since tested positive for the coronavirus, people familiar with the matter said.An employee of 17Capital tested positive after returning from the SuperReturn International event, which ran from Feb. 25 to 28, according to the people. It wasn’t immediately clear when the ailment was contracted, and some people can be infected for days without knowing it.The individual wasn’t showing symptoms while at the conference, one person said, asking not to be identified because the information is private. London-based 17Capital said a “small number” of staff are working from home in self-isolation as a result of the incident.“A member of the team did contract Covid-19, and has since made a full recovery,” 17Capital, which finances private equity firms and their portfolio companies, said in a statement. “As soon as symptoms showed, we liaised with Public Health England and followed all recommended measures to protect our people and our business partners.”No-ShowsSuperReturn, an annual event organized by a division of Informa Plc, was one of the last major finance conferences to go ahead as the virus began to spread across Europe. While the event planned for 3,000 attendees, many investors from Italy and East Asia stayed home and a few big-name guests didn’t turn up.The coronavirus has infected at least 120,000 people and killed more than 4,700 globally. Stocks have plummeted and some credit markets have seized up as economies grind to a halt and businesses send workers home.SuperReturn “was run in full accordance with the preventative measures recommended by global health and local government authorities, which included enhanced hygiene practices and guidance to attendees on the personal precautions to take,” said Dorothy Kelso, global head of the event.German health minister Jens Spahn recommended Sunday postponing events with more than 1,000 participants. In an interview with news agency DPA, he said the goal would be to slow the spread of the virus so the health-care system can cope better. Some conferences -- including the ITB travel industry trade show in Berlin, which attracts more than 160,000 participants -- were already cancelled before Spahn’s comments. KKR ClosureOther private equity firms have not been immune from the contagion in Europe. An employee at KKR & Co. in London contracted the coronavirus, prompting the investment firm to temporarily close both of its offices in the city this month.On Wall Street, some of the biggest banks including JPMorgan Chase & Co. and Goldman Sachs Group Inc. are staggering their employees’ visits to the office to slow the spread of the virus.Buyout firms have been taking precautions to protect their investments as economic activity slows. Blackstone Group Inc. and Carlyle Group Inc. have told some portfolio firms to draw down bank credit lines to help prevent any liquidity shortfalls amid signs of mounting stress in markets, Bloomberg News reported this week.(Adds detail on virus impact from eighth paragraph)To contact the reporters on this story: Sarah Syed in London at ssyed35@bloomberg.net;Benjamin Robertson in london at brobertson29@bloomberg.netTo contact the editors responsible for this story: Dinesh Nair at dnair5@bloomberg.net, ;Shelley Robinson at ssmith118@bloomberg.net, Ben Scent, Ross LarsenFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Hedge Funds Have Never Been This Bullish On KKR & Co Inc. (KKR)
    Insider Monkey

    Hedge Funds Have Never Been This Bullish On KKR & Co Inc. (KKR)

    Coronavirus is probably the 1 concern in investors’ minds right now. It should be. On February 27th we publish an article with the title "Recession is Imminent: We Need A Travel Ban NOW". We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]

  • Reuters

    Telecom Italia wants control of any single broadband network

    Telecom Italia (TIM) said on Wednesday it would not agree to being a minority shareholder in any single broadband network created by a tie up with smaller rival Open Fiber. TIM is currently in talks with U.S. infrastructure fund KKR to invest in its own secondary last-mile network. "Its time for Enel to make up its mind and decide," TIM Chief Executive Luigi Gubitosi said in a conference call on its new business plan, adding there was institutional support for a single network.

  • JPMorgan Analysts Say Work-From-Home May Hit Funding Markets
    Bloomberg

    JPMorgan Analysts Say Work-From-Home May Hit Funding Markets

    (Bloomberg) -- The impact of the coronavirus outbreak on Wall Street may worsen trading conditions for one of the world’s most liquid and important assets: U.S. Treasuries.So say strategists at JPMorgan Chase & Co., who warn that overwhelmed dealer-banks in an extreme scenario could be flooded with an extra $200 billion worth of U.S. government debt as market participants rush to secure extra financing. That could then challenge the repurchase market, a vital part of the financial system’s plumbing, just months after the Federal Reserve was forced into actions to support it.Global financial centers are grappling with the implications of the outbreak, with New York and London seeing “split” operations as big banks and dealers divide their workforces and instruct traders to work from home. Business-continuity disruptions could damp liquidity, contributing to extreme moves in reaction to unexpected developments and worsening what’s already been a turbulent ride for investors.“Though the world is much more focused on market risk at the moment, it is important to bear in mind that we also in the early stages of the first large-scale operational-risk episode,” JPMorgan analysts led by Joshua Younger wrote in a note. “Liquidity overall could also suffer, with some signs of emergent stress already apparent and transaction costs in even benchmark Treasuries significantly higher than even prior episodes of stress.”The analysts have been pointing to signs of strain in the U.S. Treasury market, including wider bid-ask spreads and a rise in the general collateral rate for repo transactions. Yields on benchmark 10-year U.S. Treasuries dropped sharply in recent weeks, reaching a record low of 0.31 Monday as investors herded into the safety of government debt amid the worst Wall Street sell-off since the global financial crisis.It wouldn’t be the first time that liquidity -- essentially a description for the ease of trading -- dried up in the Treasury market. In October 2014, a sudden “flash” rally shocked traders and prompted U.S. regulators to investigate the price action.A disruption in the vast repo market, where Treasuries are a crucial form of collateral for loans among financial institutions, unsettled investors last September. That then prompted the Fed to unveil billions of dollars worth of liquidity support for the market, in an initiative still under way.Super-Safe Treasuries Can Also Be Risky, Wall Street WarnsWhile many of the largest and most systemically important dealer-banks have contingency plans in place to deal with this type of disruption, the JPMorgan analysts said, smaller operators -- which have become bigger players in one type of overnight repo -- may be more vulnerable.“We are already seeing market-making severely disrupted, and to the extent that logistical frictions prevent ‘human’ traders from providing a backstop, liquidity-transaction costs can stay very high compared to even recent history,” the JPMorgan team said. “For many market participants, operationally intensive activities with limited potential upside will look far less appealing. This is particularly true of overnight repo funding.”Banks and other financial firms around the world have been reporting coronavirus cases as the outbreak which has claimed more than 4,000 lives globally spreads from China to Europe and the U.S. This week alone Point 72 Asset Management, Deutsche Bank AG, and private equity firm KKR & Co. have confirmed cases, prompting the companies to instruct staff to work from home, or to divide up their sales and trading teams at affected offices.(Adds tout.)To contact the reporter on this story: Tracy Alloway in Hong Kong at talloway@bloomberg.netTo contact the editors responsible for this story: Tracy Alloway at talloway@bloomberg.net, Christopher Anstey, Joanna OssingerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Business Wire

    KKR Appoints Chee-Wei Wong as Head of Global Impact for Asia

    KKR Appoints Chee-Wei Wong as Head of Global Impact for Asia

  • Reuters

    Telecom Italia misses 2020 core profit target, reinstates dividend

    Italy's biggest phone group Telecom Italia (TIM) said on Tuesday it was postponing its target to return to core profit growth this year after anticipating lower service revenues dogged by underperforming domestic business. In a statement Telecom Italia said total revenues last year fell 2.6% to 18 billion euros, in line with a company-provided consensus of 17.998 billion euros. TIM, whose investors count French media company Vivendi and investment firm Elliott, said organic earnings before interest, tax, depreciation and amortisation (EBITDA) after leases fell 2.2% to 7.2 billion euros in the 12 months ending December.

  • Barrons.com

    The Stock Market Drop Has Caused a Lot of Pain. But Private Equity Stands to Benefit.

    Lower merger and acquisition prices could be one positive byproduct of the stock market’s recent volatility. That could be good news for the private equity industry, which has a lot of money to put to work.

  • Deutsche Bank, KKR Staff in Europe Infected, Upending Office
    Bloomberg

    Deutsche Bank, KKR Staff in Europe Infected, Upending Office

    (Bloomberg) -- A Deutsche Bank AG employee in Frankfurt and another at KKR & Co. in London contracted the coronavirus, setting off swift measures to contain potential outbreaks.Starting Tuesday, Deutsche Bank will divide sales and trading teams at its affected offices in a building across from its main towers in Frankfurt. It’s sending some personnel to a recovery site until March 27 as a precaution, and some employees may be asked to work from home.“Our colleague is in good health and good spirits but will remain under observation,” the bank said in an internal memo late Monday. “All employees who have had contact with the affected colleague were informed directly, and we will undertake deep cleaning on floors N1 and N2 and other areas in DBC.”KKR said it’s temporarily closing both of its London offices to have them sanitized and that staff there should work from home until further notice. It’s requiring personnel who had close contact with the employee who contracted the virus to quarantine themselves for 14 days.“This individual is at home and recovering well,” said Kristi Huller, a KKR representative. “We continue to monitor the situation and will adjust our response as necessary.”At financial hubs around the world, major firms have begun splitting up key parts of their workforces to limit the potential for an outbreak to spread through a division, disrupting business or even markets. Banks as far apart as London-based HSBC Holdings Plc and San Francisco-based Wells Fargo & Co. have confronted individual cases of the virus in recent days. At the same time, regulators are pressing lenders to accommodate the needs of clients affected by the illness.Deutsche Bank began moving investment-banking staff in London to separate offices as another precautionary measure, the lender’s U.K. Chief Executive Officer Tiina Lee said in a Bloomberg TV interview Monday.“We expect no impact on our ability to operate our full range of services for our clients and recognize that this setup will require extra effort and discipline from all,” Deutsche Bank wrote in its memo late Monday.The Frankfurt-based lender said employees working remotely won’t be allowed at offices where they aren’t assigned and that staff should avoid meeting socially with any colleagues stationed elsewhere. The bank is also planning to take other “precautionary hygiene measures” to make the workplace safe.KKR’s Huller echoed that.“We are taking all necessary precautions, based on the advice from Public Health England, to ensure the safety and well-being of our employees,” she said.(Adds measures at Deutsche Bank in London in seventh paragraph.)\--With assistance from Noah Buhayar.To contact the reporters on this story: Steven Arons in Frankfurt at sarons@bloomberg.net;Heather Perlberg in Washington at hperlberg@bloomberg.netTo contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, ;Dale Crofts at dcrofts@bloomberg.net, Christian BaumgaertelFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    KKR says employee tests positive for coronavirus, shuts London offices

    Private equity firm KKR & Co Inc said late on Monday an employee in its London office had tested positive for coronavirus, and that it would temporarily close both its London offices to have them sanitized. "Our London office has recently been impacted, with a member of staff being confirmed with COVID-19," a company spokeswoman said in a statement, adding that the individual was at home and recovering well. As a necessary precaution, the company is temporarily closing both its London offices to implement a thorough cleaning and sanitization process and employees have been asked to work from home until further notice, the spokeswoman said.

  • Barrons.com

    Dave & Busters, International Flavors, Trinity Industries, 13D Filings

    Kohlberg Kravis Roberts increased its stake in casual dining and entertainment chain Dave & Busters.

  • Barrons.com

    BMC, Backed by KKR, Is Buying Compuware in Its Biggest Deal Yet

    BMC, one of the private-equity firm (KKR)’s portfolio companies, is buying its longtime partner Compuware in its largest deal to date. Financial terms of the transaction, announced Monday, weren’t revealed. Thoma Bravo, which acquired Compuware in 2014, is the seller.

  • Return of the MAC? Coronavirus could be the new negotiating leverage in deals
    MarketWatch

    Return of the MAC? Coronavirus could be the new negotiating leverage in deals

    The coronavirus could prompt private equity funds and companies to look for a way out of deals and financing agreements. Spooked by the rapid spread of the deadly virus, companies and buyout groups worldwide are quietly starting to ask their lawyers whether they can invoke so-called material adverse change (MAC) clauses and walk away from deals. MAC clauses allow a buyer or seller to back out of a deal in the event of a material change in the business, operations or financial conditions of a company.

  • Major Houston-based software co. to acquire longtime competitor-turned-partner
    American City Business Journals

    Major Houston-based software co. to acquire longtime competitor-turned-partner

    Houston-based BMC Software Inc. has reached a deal to acquire Detroit-based Compuware Corp. — less than two years after reports surfaced about the possibility of a similar deal. BMC is owned by global investment firm KKR & Co. LP (NYSE: KKR) and provides IT software and services to many of the world's largest companies. Compuware is owned by private equity firm Thoma Bravo and provides mainframe application development, delivery and support solutions to the same types of companies.