KKR exchange digital currency platform
KKR group (Kohlberg Kravis Roberts & Co. L.P.), translated as "Kohlberg Kravis" in Chinese, is an old leveraged buyout king, one of the most successful instrial investment institutions in financial history, and one of the most experienced private equity investment institutions with the longest history in the world
KKR group has global business. KKR group is headquartered in New York and has many offices in San Francisco, London, Paris, Hong Kong, Tokyo, Beijing, etc. As of June 30, 2013, the total assets managed by KKR group reached US $83.5 billion. Its investors include corporate pension funds, social pension funds, financial institutions, insurance companies and university endowment funds. KKR group is committed to working closely with the management of the invested enterprises and using its global resources and operational expertise to create value through equity investment.
KKR group has global business. KKR group is headquartered in New York and has many offices in San Francisco, London, Paris, Hong Kong, Tokyo, Beijing, etc. As of June 30, 2013, the total assets managed by KKR group reached US $83.5 billion. Its investors include corporate pension funds, social pension funds, financial institutions, insurance companies and university endowment funds. KKR group is committed to working closely with the management of the invested enterprises and using its global resources and operational expertise to create value through equity investment
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In KKR's investment mode, there are two key points: one is to seek the acquisition object with undervalued and low P / E ratio; the other is to create enough cash flow. The future cash flow is enough to repay the debt without affecting the company's proction and operation. KKR's highly leveraged buyout is full of risks, but under the restriction of these two iron laws, they resist numerous tempting buyouts. KKR cooperates with the management of the target company to complete the LBO / MBO, and gives the management of the target company great autonomy after the acquisition. After the target company's competitive strength is enhanced and its value rises, it withdraws from the company through listing and other means to obtain high returns
KKR has three roles in LBO / MBO transaction:
financial consultant; They invest their own capital and become one of the partners, sharing the risk with other limited partners (usually institutional investors) who participate in LBO / MBO equity investment; As the regulatory agent of LBO / MBO equity investment group. In the process of pursuing profits, KKR uses corporate governance mechanisms debt, managerial ownership and board supervision
the hard constraint of debt can make managers spit out "idle cash flow" in the enterprise, so that they can not use this part of funds for inefficient projects; KKR makes managers make decisions like owners by holding a large number of shares; At the same time, by strengthening the internal restraint mechanism of the enterprise - the board of directors, KKR shows people how to properly handle the separation of functions between the board of directors and the management as the representative of shareholders, major shareholders and creditors
KKR reces the agency cost caused by the separation of two rights by strengthening the corporate governance structure. In a sense, the profit of KKR comes from the rection of agency cost. Because of this, KKR shows its unique charm as an economic institution and an economic model. The main conditions for KKR to set target enterprises are as follows:
having relatively strong and stable cash flow generating capacity; The enterprise management has a long working life (more than 10 years) and rich experience; It has great potential space and ability to rece cost and improve operating profit; The proportion of corporate debt is low. The advantage of KKR is to analyze the enterprise from the perspective of Finance (financial investors), understand the ability of cash flow, judge the ability and scale of the enterprise to bear the debt, and finally choose the managers who can control the cash flow of the enterprise to repay the debt
once the LBO / MBO transaction is completed, the key to the success or failure of an enterprise depends on its daily management. However, KKR does not participate in the actual operation and management of the LBO / MBO enterprise, and basically shakes off the shopkeeper. It usually only meets the management at the board meeting once a month. After LBO / MBO, the equity structure of enterprises participated by KKR is usually divided into three parts:
the general partner, usually acted by KKR, is responsible for initiating LBO / MBO transactions, as the supervisor of the business performance of LBO / MBO enterprises; The limited partner is responsible for providing the equity capital required by LBO / MBO, and presides over the audit committee and management compensation committee of LBO / MBO enterprises; LBO / MBO senior executives hold a certain proportion of the company's shares. KKR and management managers have a clear understanding at the beginning that the so-called "transaction" is not just the financing transaction itself: it is a series of plans and agreements among the management, creditors and purchasers on the company's attempt to achieve the goal in the next 5-7 years. These plans are included in the financing structure in the form of payment time and debt terms, so as to make the debt constraint, debt recovery and debt recovery work together Equity and high performance standards are closely linked