"Barbarian at the Door", Wall Street legendary private equity fund KKR completed the replacement of the head

Financial Associated Press (Shanghai, editor Shi Zhengcheng) news, local time on Monday morning, global private equity giant Kohlberg Kravis-Roberts (KKR) announced the completion of management succession, 49-year-old Joe Bae and 48-year-old Scott Nuttall as co-CEOs, 78 and 79-year-old founders Henry Kravis and George Roberts will take a back seat as co-executive chairman, will still participate in the company's management affairs.

<h3>(Source: KKR official website).</h3>

As one of the most important personnel changes in the global investment community, the replacement of KKR's head has long been foreshadowed. Back in 2017, when Bae and Nuttall were appointed global co-chair and global co-chief operating officers, the market had already referred to the two as KKR's new co-heads. Since the two successors were officially recognized, the company's stock price has more than tripled in four years.

KKR was founded in 1976, and apart from the departure of co-founder Jerome Kohlberg in 1987, the company's leadership has remained simple and solid, and it is only today that it has ushered in a second pair of CEOs. Over the past four decades, the firm has also grown to become one of the world's best-known private equity firms. According to the official website data, as of June 30 this year, the company's asset management scale was $429 billion, while the company's portfolio holdings in the previous fiscal year achieved a total of $244 billion in revenue.

From an earnings perspective, from 1976 to the second quarter of this year, KKR's cumulative gross internal investment return (Gross IRR) reached 25.6% (net IRR of 18.8%), operating for at least 24 months. For comparison, the S&P 500 returned just 6.9% over the same period.

For the global capital market, KKR became famous with the leveraged buyout RJR Nasbeck, and the best-selling book "Barbarian at the Door" is a classic work describing this shopping mall fight. Although KKR is a New York-based institution, A-share investors are no strangers to it, and the institution has invested in Qingdao Haier, Mengniu Dairy, Sunner Development, CICC and so on.

The latest changes also make Blackstone's Schwarzman the only founder of a major publicly traded private equity firm still serving as CEO. Carlyle's current CEO, Kewsong Lee, took over the founding team in 2018, the same year Ares Asset Management also changed hands, and earlier this year Apollo Asset Management also changed personnel due to management involvement in epstein.

In conjunction with the announcement of the change of management, KKR also announced a change in the shareholding structure, which plans to change to the form of same shares and equal rights by the end of 2026.