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KKR-Reliance Retail deal: Here's all you need to know about the private equity giant

KKR & Co will invest Rs 5,500 crore in Reliance Retail in exchange for a 1.28 percent stake.

September 23, 2020 / 11:56 AM IST

US Private equity (PE) firm KKR & Co will invest Rs 5,550 crore in Reliance Retail in exchange for a 1.28 percent stake, in its second deal with Reliance Industries (RIL).

The transaction values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore, RIL said in a statement.

The PE recently invested in RIL's telecom unit, purchasing a 2.32 percent stake in Jio Platforms for Rs 11,367 crore.

The PE firm has also invested in Indian companies such as Max Financial Services, Bharti Infratel, Ramky Enviro Engineers and Coffee Day Resorts.

Also read: KKR-Reliance Retail deal | American buyout firm to invest Rs 5,500 crore for 1.28% in RIL unit

In 2019, it bought a majority stake in education franchise EuroKids Group from Gaja Capital.

KKR, headquartered in New York, was founded in 1976 by Jerome Kohlberg Jr, Henry Kravis and George Roberts. Kravis and Roberts are cousins who worked at Bear Stearns before starting KKR.

KKR raised its first $1 billion institutional fund in 1984, and eventually went on to expand its presence across Europe, the Middle East and the Asia Pacific region.

The investment firm's portfolio includes various asset classes, such as private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds.

KKR acquired KKR Private Equity Investors in 2009. The company listed on the New York Stock Exchange (NYSE) in 2010.

KKR has completed private equity transactions with around $630 billion of total enterprise value as of June 30, 2020, according to the company’s website.

As of June 30, the company has assets under management (AUM) worth $222 billion.

Mumbai-based KKR India Financial Services ("KIFS") is KKR’s alternative credit business in the country.

Disclaimer: Reliance Industries Ltd., which also owns Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

Moneycontrol News
first published: Sep 23, 2020 08:15 am