KKR's Roberts sees portfolio loss, IPO in works

* Expects first loss for portfolio since 1990-1991

* Still working on IPO, but no timeframe given

* Sees drought in PE lending for at least 12 months

(Adds details, background)

By Jeffrey Hodgson

HONG KONG (Reuters) - Kohlberg Kravis Roberts & Co [KKR.UL] co-founder George Roberts said on Thursday the firm will suffer the first annual loss on its portfolio since 1990-91 and sees little lending available for buyout deals for the next year.

But the private equity pioneer said his firm was still working on its initial public offering, though he declined to discuss when it would be brought to market. The firm this month delayed plans to go public until at least next year.

Asked if he could comment on the timing, Roberts told Reuters, "not really, other than the public statements we've made, which is we're moving ahead with it."

Roberts spoke to Reuters after giving a speech at a private equity industry dinner in Hong Kong in which he said the economic environment reminded him of the deep downturns of 1973-1975 and 1980-82.

He said the combination of an economic slump and financial crisis would hurt the value of its holdings, which include hospital group HCA, payment processor First Data and Energy Future Holdings Corp, formerly known as TXU Corp.

"There are going to be losses in portfolios. Until this year, we've only had one year where our portfolio was down and that was 1990-1991. And we'll obviously report a loss this year," he said.

BARBARIANS AT THE GATE

Roberts, along with his cousin Henry Kravis and their Bear Stearns boss Jerome Kohlberg started KKR in 1976, pioneering the leveraged buyout industry, now known as private equity. Kohlberg left in 1987.

Early deals for the firm include grocery retailer Safeway, mattress maker Sealy and tobacco and food group RJR Nabisco, a deal chronicled in the best seller "Barbarians at the Gate."

The New York firm has hit a rough patch, as the credit crunch and ensuing global financial crisis hammered the private equity industry.

Roberts said the outlook was unlikely to improve anytime soon and that private equity firms would need to focus creating value in their portfolio companies by improving their operations.