KKR Aims To Replicate European Private Equity Success: Report

KKR & Co. Inc. KKR shares are trading higher on Friday.

The unit’s assets under management have reportedly increased twofold over the past five years, reaching over $37 billion, as noted by Mattia Caprioli and Tara Davies, who oversee KKR’s operations in Europe, the Middle East, and Africa.

The company is optimistic that a deal pipeline will drive similar growth in the years ahead, reported Bloomberg.

KKR made its first European investment nearly 30 years ago and established its first dedicated fund for the region in 1999. Since then, it has launched a total of six funds focused on Europe, including an $8 billion fund closed last year, per the report.

“We see a sharp bifurcation across many sectors in Europe between the demand for sustainable, green, and efficient buildings and older, less efficient stock. We are focusing on developments and assets that are best-in-class both in terms of traditional metrics such as location and by sustainability standards,” KKR said in a statement in May while commenting on European Real Estate. 

In an interview at the International Private Equity Market event in Paris, Caprioli, one of the first employees at KKR Europe, expressed confidence that the company could double its assets again, Bloomberg added.

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Despite a cautious outlook toward 2025 due to slow activity and a globally subdued IPO market, he noted that the firm has been notably more active this year, Bloomberg added.

The executives’ optimism signals the private equity industry’s push to rebound after facing challenges with company exits, due to mismatched price expectations between buyers and sellers. This reluctance to sell has led to friction between private equity funds and their investors, or limited partners, who have been pressing for higher cash returns, Bloomberg added.

In November, KKR agreed to acquire Telecom Italia’s landline network. The €22 billion transaction, approved by regulators in May, allowed Telecom Italia to reduce its net financial debt. Bloomberg added that the deal marked the first of its kind for European telecom operators.

Price Action: KKR shares are trading higher by 1.76% to $122.48 at last check Friday.

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