Here is Everything You Need to Know About KKR That Bought 1.28% Stake in Reliance Retail
As of June 30, KKR has assets under management (AUM) worth $222 billion.
American buyout firm KKR & Co will invest Rs 5,550 crore in Reliance Retail in exchange for a 1.28 per cent 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 US private equity firm recently invested in RIL's telecom unit, purchasing a 2.32 percent stake in Jio Platforms for Rs 11,367 crore. KKR will make the investment from its Asia private equity funds. Reliance has been looking to expand rapidly online to take on the likes of Walmart Inc's Flipkart and Amazon.com Inc's Indian arm.
Speaking on the deal, Henry Kravis, Co-Founder and Co-CEO of KKR, said, “Reliance Retail’s new commerce platform is filling an important need for both consumers and small businesses as more Indian consumers move to shopping online and the company offers tools for Kiranas to be a critical part of the value chain. We are thrilled to support Reliance Retail in its mission to become India’s leading omnichannel retailer and ultimately to build a more inclusive Indian retail economy.”
KKR has also invested in Indian companies such as Max Financial Services, Bharti Infratel, Ramky Enviro Engineers and Coffee Day Resorts.
In 2019, it bought a majority stake in education franchise EuroKids Group from Gaja Capital. Headquartered in New York, the firm 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 USD 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.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.