Kohlber Kravis Roberts (NYSE: KKR) is one of the worlds largest private equity firms. It is an American multinational firm specializing in leveraged buyouts. The firm has completed over $400 billion of private equity transactions and was a pioneer in the leveraged buyout industry. Today they are still led by two of their founders George R. Roberts and Henry Kravis. Other notable KKR leaders include former chair of the Republican National Committee Kenneth Mehlman and former U.S. Commanding General David Petraeus.
Recently KKR has been looking into real estate investments throughout mainland China. This is an interesting choice of investments for the firm given China's concerns that its property market, although hot may be turning into a bubble. KKR this year launched its second fund dedicated exclusively to Asia. The most recent of these is a $6 billion private equity fund. In China specifically KKR is taking local stance with respect to their investments. The majority of their investments will be minorities. Joe Bae a managing partner says that KKR will focus on areas outlined by the government as needing improvement. He stated,
“Real estate in China is by nature a very local business, so I think you really need to have very targeted bets: in which city, what [type] of real estate – residential, commercial or retail.”Kravis also stressed the mentality of KKR with respect to their investments. He stated that he does not want people to think of KKR as a "capital provider" but rather a "solution provider." He sees KKR's role as more than just a Capital Provider. In addition to their investments in China, Kravis said that Japanese firms which are known for their bureaucracy have become more open to foreign investment ideas.
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