An amended prospectus filed by KKR reveals that its owners made $1.3 billion last year, averaging $325 million per quarter, no doubt due to the credit-crunch-free first half of the year. In the first quarter of this year, though, they’ve only pocketed $106.3 million, which, if it keeps up, will make this year’s sum total less than $500 million. *Shudder*
The Deal: Kohlberg Kravis Roberts & Co. said Henry Kravis, George Roberts and its other owners raked in $1.3 billion in cash and in-kind distributions in 2007 and took home another $106.3 million in the first quarter of 2008. KKR, the New York private equity giant, made the disclosure in an amended preliminary prospectus for its planned stock listing later this year.
The two amounts evince the sharp decline in private equity industry profits and partners’ pay since the leveraged buyout market soured in the second half of 2007.
Averaging $325 million per quarter, last year’s $1.3 billion is the total amount that KKR’s partners and principals pocketed in deal and fund management fees, as well as carried interest on KKR’s deal profits in the first half of the year, before the credit crunch stilled LBO activity.
KKR previously disclosed that it distributed $1.06 billion to its owners in 2006.
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