Henry Kravis’ Path to KKR
October 30th, 2009
Henry R. Kravis is a successful investor and financier who is best known as a founding partner of KKR (Kohlberg Kravis Roberts and Company), a private equity firm specializing in leverage buyouts.
Prior to his current achievements, Henry Kravis worked at several positions in the financial sector, particularly in New York City. Kravis and George Roberts, his cousin, was employed at Bear Stearns and Company. There, he functioned under Jerome Kohlberg Jr., the company’s corporate finance manager.
In 1976, Kravis, Roberts and Kohlberg resigned from the company and formed KKR, where Kravis contributed to development of the acquisition strategy called leverage buyout (LBO). He and his partners established several exclusive incorporations to acquire a unique set of companies that they deemed were not performing as well as they should. In the 80s, KKR, headed by Kravis and company, went on a restructuring and was resold at a large profit.
In 1987, Kohlberg resigned from KKR as senior partner and Henry Kravis filled in the position. Under Kravis’ leadership, KKR performed an LBO worth $24.88 billion on RJR Nabisco in 1988. The account was even portrayed on film and in the book titled Barbarians at the Gate.
Some other companies that Kravis has purchased and sold throughout his career include American business brands Playtex, Samsonite, Beatrice, Texaco, Borden, Safeway, and Gillette.
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