KKR's IPO terms.

…In finance, private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange.

This news is a like the firs-hand-notice, like the eye to the future. During these times it’s a huge advantage. With my “brainy partner”, this should already be in production.

KKR reveals Dutch IPO terms July 20 2009 05:10. Kohlberg Kravis Roberts will on Monday publish details of its plan to list on the Amsterdam stock exchange after the independent directors of its Dutch-listed fund approved a merger with the US private equity group. KKR staff and owners will receive 70 per cent of the combined entity and have the right to switch its listing to New York six months after the merger is completed on October 1. The deal still requires approval by shareholders in KKR Private Equity Investors (KPE), its Amsterdam-listed fund, which will own 30 per cent of the merged group and have the right to switch its listing to New York after 12 months. To Henry Kravis and George Roberts, KKR’s co-founders, the listing is a key step for the firm they founded in 1976, which shot to fame 20 years ago with the $30bn takeover of RJR Nabisco. The listing takes Mr Kravis closer to matching his rival Stephen Schwarzman, co-founder of competitor Blackstone, which floated in New York in 2007. KKR initially intended to follow suit, but last year changed this for a plan simultaneously to merge with KPE and list in New York, before the stock market slump forced it to opt for a more modest Amsterdam listing. The US private equity group will on Monday say its assets under management are expected to increase slightly in the second quarter to $50.8bn, while its economic net income (a measure of profits) will be $345m-$370m. Fee-related earnings will be $45m-$55m. KKR plans to acquire all the assets and liabilities of KPE in return for 70 per cent of the listed entity. KPE would own no interest in KKR’s managing partner, a separate affiliate, which will continue to manage the merged group’s business and affairs. All earnings would be distributed to shareholders equally, but 40 per cent of carried interest – a share of profit on investments – would be reserved for KKR staff. For most of KPE’s existence, the listed entity has been a source of frustration for KKR because the market price of its shares plunged to levels below the values the private equity group assigned to the companies in the KPE portfolio. Once the deal is approved, KKR will in effect be taking back a share of these deals, including Texas utility Energy Future Holdings and UK pharmacy chain Alliance Boots, at what it considers a bargain price. KKR said no shares would be sold as part of the merger. KPE first listed three years ago for $25 a share, raising $5bn. But on Friday they closed at $5.38. Lazard and Citigroup are advising KPE and its independent directors respectively and both delivered opinions that the merger was fair to KPE. Goldman Sachs and Morgan Stanley are advising KKR.