Best team in KKR PE?
Is it industrials? Know some people say it’s their bread and butter but struggling to see why — they’re not doing huge deals and not writing $1bn+ checks in that group
Media seems to just be small $500mm - 2bn TEV deals
Healthcare? Tech? FIG? Infra? Or why industrials? Thanks.
Consumer is weakest
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Why is that? just curious
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I thought TMT was bundled as part of growth pe
Do they have buyout media and tech as well?
Yes
Delete
Charter Next Gen was $1bn+ equity check fwiw (not sure how much for the fund post LP syndication). Industrials team is often focused on operational improvement or buy & build type of deals which lend themselves to more middle market assets / smaller equity checks, but they certainly have $bn exits (see CHI)
G
The Industrials team had worked on a middle market strategy before there were plans to start a separate fund (see Hyperion, Minnesota Rubber & Plastics, GSI). Part of this is what I mentioned previously on strategy and the other part is that valuations for these larger deals end up being frothy if you’re bidding against all the other MFs in a process for a heavily banked deal. The middle market fund check size was intended to be $200mm or so, so I wouldn’t read that as being dilutive to the importance of industrials to the main fund strategy. Industrials (like every vertical at KKR) will review every large cap deal that comes around, it’s just not historically been KKR’s strategy to pay aggressive multiples for huge deals like CVC / H&F
The "best" group varies from person to person. If someone really wanted to get into growth investing but just wanted KKR for the name brand early in their career, working in industrials may not be the "best" group for them, even if KKR arguably has one of the best industrials team on the street. A better way to breakdown this question is to ask the following questions:
1. What industries/strategies/business models interest me most?
2. Which groups will best position me to achieve where I want to go in 5-15 years?
3. Which groups are the best culture fit?
Based on those 3 questions, the rankings will be different from person to person.
Healthcare team is probably having fun managing Envision…
While Jim Momtazee rides off into the sunset with his 3BN first time find.
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