Commentary - 07/29/2008

KKR - A Black Stone or a Black Rock?

KKR (Kohlberg Kravis Roberts & Co.), the firm that bought out RJR Nabisco. This event was chronicled in the book Barbarians at the Gate. Now they are planning to take KKR public, as explained in this Associated Press article KKR to go public on NYSE via fund takeover.

NEW YORK (AP) Private equity powerhouse Kohlberg Kravis Roberts & Co. said Monday a plan to go public through a takeover of its Amsterdam-listed investment fund gives it access to new markets to make acquisitions and provides the European shareholders better value.
Well, this could be a good thing or a bad thing. The major investors will have to decide whether KKR is a Black stone or a Black rock. There is a big difference whether one wins or loses. Notice the chart below.

BX is The Blackstone Group and BLK is BlackRock, Inc.

In fact, there's another article published by, K.K.R.'s Big Plans that thinks similar thoughts:
Henry Kravis is, at long last, taking buyout giant Kohlberg Kravis Roberts & Co. public, but a look at the deal and the firm's ambitions means management may want it to look more like BlackRock than Steve Schwarzman's Blackstone.

When Blackstone went public last year, it was a spectacle as dollar signs danced in the heads of Wall Street. Now, the stock has essentially been cut in half as buyout deals have gotten less attractive as their costs have risen.

It will certainly be interesting to see which Major Holder buys into KKR's public corporation. Below is how the Major Holders of Blackstone and Blackrock stack up.

Then again: Sometimes ONLY The Dragon Wins

Symbol Name Of Corporation

Blackstone Group (As of 31-Mar-2008)
Top 10 Institutional HoldersSharesPct.Value
AXA (Paris, France)24,865,6499.76$394,866,506
KeyBank National Association7,091,0542.78$112,605,937
Mazama Capital Management, Inc4,852,2561.91$77,053,825
Kinetics Asset Management Inc. *3,683,0721.45$58,487,183
JP Morgan Chase & Company3,603,3651.41$57,221,436
Putnam Investment Management, LLC2,623,0151.03$41,653,478
Horizon Asset Management, Inc./NY *2,486,958.98$39,492,893
Martin Currie Investment Management Limited1,978,602.78$31,420,199
Morgan Stanley1,945,886.76$30,900,669
Deutsche Bank Aktiengesellschaft (Frankfurt, Germany)1,809,027.71$28,727,348
% of Shares Held by All Insider and 5% Owners:12%
Top 10 [6.5%] of 155 Institutional Holders Control21.57%
Percentage of Barclays and "Associates" Control5.98%
NOTE: Kinetics Assets and Horizon Assets are sister companies.
Nathaniel Charles Jacob Rothschild is a Direct Holder.
Blackstone Group L.P. was founded in 1985 by Peter G. Peterson and Stephen A. Schwarzman.

Symbol Name Of Corporation

BlackRock, Inc. (As of 31-Mar-2008)
Top 10 Institutional HoldersSharesPct.Value
Merrill Lynch & Co., Inc.65,002,12455.18$13,272,133,678
PNC Financial Services Group, Inc.43,368,34236.81$8,854,948,069
Neuberger Berman, LLC1,763,0651.50$359,982,611
Marsico Capital Management, Llc1,268,3391.08$258,969,457
Barclays Global Investors UK Holdings Ltd1,041,843.88$212,723,503
Price (T.Rowe) Associates Inc1,002,450.85$204,680,241
Turner Investment Partners, Inc.915,891.78$187,006,624
Loomis Sayles & Co L P866,047.74$176,829,476
Kinetics Asset Management Inc. *736,246.62$150,326,708
FMR LLC (Fidelity)728,824.62$148,811,284
% of Shares Held by All Insider and 5% Owners:3%
Top 10 [3.8%] of 260 Institutional Holders Control99.06%
Percentage of Barclays and "Associates" Control95.22%

2008 by Edward Ulysses Cate
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