* Shares will delist from Euronext, relist on NYSE July 15
* Kravis and Roberts each own nearly 13 pct of KKR
* Combined, their stakes are worth about $1.6 bln
* Annual salaries are $250,000; less than Schwarzman
* KKR valued at around $6.4 bln
(Adds detail about $500 million share offer)
By Megan Davies
NEW YORK, July 6 Storied buyout firm Kohlberg
Kravis Roberts & Co KKR.AS will end its long wait for a New
York Stock Exchange listing on July 15, joining rival
Blackstone Group LP (BX.N), which made its debut three years
KKR, behind huge acquisitions such as RJR Nabisco and TXU,
originally announced plans to list on the NYSE via a
traditional initial public offering in July 2007, a month after
Blackstone went public and just before the markets started to
It later followed a more complex route that involved buying
its Amsterdam-quoted fund, KKR Private Equity Investors,
becoming a Euronext-listed company and then applying to move
the listing to New York.
The upcoming listing comes three years after rival
Blackstone Group led the path for private equity firms going
public. Blackstone's shares are currently trading at about a
third of their $31 IPO price.
Hot on KKR's heels will also be the expected listing on the
NYSE of Apollo Global Management [APOLO.UL].
KKR said on Tuesday the U.S. Securities and Exchange
Commission declared its registration statement effective, and
the shares, under the ticker KKR, will start trading on the
NYSE at the market opening on July 15.
Shares traded on Euronext will cease trading at the end of
the day on July 14.
KKR's executives are not selling any shares in the listing,
but the firm previously announced plans to sell $500 million of
new units after it lists. It said in a news release on Tuesday
that its proposed offering would take place after the NYSE
listing, subject to market conditions.
(For a Breakingviews column on KKR,
KKR earlier on Tuesday updated its NYSE listing filing for
the last time with the SEC, giving details of senior executive
ownership and pay. Buyout firms have typically kept details
such as compensation closely guarded, but such financial
disclosures are becoming more common as a number go public.
Co-founders Henry Kravis and George Roberts are each taking
a yearly salary of $250,000, according to the filing.
They received a distribution of $22 million last year,
mostly made up of their share of KKR's fee income, generated
from businesses, including KKR's capital markets, private
equity funds and KKR asset management units, the filing said. A
small part is carried interest -- the percentage of profit that
private equity executives take when their funds perform well.
They were also each awarded a $70 million noncash amount,
which represents how KKR accounts for the difference in value
between what they owned before KKR became a public company and
how it is valued after becoming publicly traded.
The listing process contrasts with Blackstone's IPO. The
payout to Blackstone CEO Stephen Schwarzman was up to $677.2
million. Schwarzman, who drew a salary of $350,000 last year,
currently owns about 23 percent of Blackstone.
Schwarzman was ranked in March as number 171 on Forbes
magazine's world's top billionaires with $4.7 billion, a hair
ahead of Kravis at number 201 with $4.2 billion.
Apollo also recently disclosed details of compensation.
Founder Leon Black received $787,391 in compensation in 2009,
which was made up of $100,000 salary.
Private equity executives typically take the bulk of their
pay in carried interest and income from fees rather than
Kravis and Roberts, who co-founded the firm in 1976 with
Jerome Kohlberg Jr., each own 87 million shares of the company,
according to the filing, which equates to just under 13 percent
each of the total 683 million shares. Kohlberg resigned in 1987
and later started his own buyout firm.
Based on the price of KKR's shares on Euronext at Monday's
close, Kravis and Roberts' stakes are worth around $809 million
each, or $1.6 billion total. Their percentage ownership in the
company, not previously disclosed, will be about the same
before and after its NYSE listing.
Kravis' and Roberts' ownership stake has gradually
decreased as the company has grown. The company has assets
under management of about $55 billion and employs about 600
staff worldwide. Those employees own a significant portion of
KKR as a whole is valued at around $6.4 billion, based on
Monday's close in Amsterdam.
KKR said in March when it filed for the NYSE listing that
the move would allow it to have a more permanent capital base,
use stock to retain and attract staff, and have a currency to
use in making acquisitions.
(Reporting by Megan Davies; editing by Matthew Lewis, Steve
Orlofsky and Andre Grenon)