KKR Software Updates
I heard from a friend that the software group at KKR underwent a big restructuring and the top dogs are out. judging by their portfolio companies, this seems like a sinking ship.
Are other firms or funds seeing this kind of meltdown?
You mean buying mature low growth software companies from the bargain bin at TJ Maxx, levering them up, and bleeding them dry isn’t a winning strategy in the age of AI?
Is Mr. Kim out?
If you mean John Park, yes
yes. which shop is he headed to? starting his own fund?
John Park is an absolute joke. Have you seen all the zeros and below 1.0x deals next to his name. I’d be surprise if he can raise a fund. Might be time for him to just retire and find something else to do
This is terrible news for the banks who made a killing selling crappy software businesses to KKR at multiples nobody else would pay for. I am sure at least a few banking MDs are very sad at this news. A lot of these generalist MFs have no real right to win in software or particularly unique expertise, not shocking they are doing so terribly.
Thoughts on being a software banker going forward?
LMM/MM is the place to be
Assume this is a joke lol
There are still funds doing well on LMM/MM software deals (even with multiple compression). MF-size software deals are looking... pretty gross. Are you making as much money selling 2-3 solid small cos vs 1 big shitty one? Maybe not. But I'd argue the sustainability of the job itself has a better outlook than the latter because your customer (funds & strategics buying reliable, mid-size assets) has a better outlook than folks buying the multi-b assets that've been flipped between bigger funds half a dozen times. You won't make more, you won't be buy-side recruiting as well, but I'm willing to bet you've got better job security (I know of at least 3 large cap s/w groups that been downsizing) which if you just wanna be a "software banker" I think is more important.
Obviously I'm not trying to say something absurd like "LMM/MM banks are a better place to be than Qatalyst" - but banks like that are an outlier IMO not the rule.
Was this publicly announced? Who is leaving vs staying within that team? Wonder how they will manage the remaining portcos
There’s a Bloomberg article on it, two MDs from other teams moving over as co-heads and John Park in an advisory role to transition.
Any word on if there are other changes to the more junior team? The two MDs taking over are based in NYC so also curious if there will be more east coast presence or if the software team will otherwise still be based in Menlo
Shoutout to Finago
Heard the team is essentially in a holding pattern. getting no deals done and firm is deprioritizing them. I'd go elsewhere if you have options.
sounds about right. I heard a few of the juniors already left or are looking to jump ship after seeing the writing on the wall and lack of SW expertise from seniors...
Is NY TMT team just focused on media and telecom now? Or what’s the connection between NY and MP TMT
NYC has always been media & entertainment with MP being software
Not true. 50%+ of the KKR software team is in NYC
Do RR and AS have any software experience?
Quod molestias eius quod. Corrupti eum deleniti non reiciendis aliquid.
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