Henry Kravis, co-founder of private equity firm Kohlberg Kravis Roberts & Co , said on Tuesday the market for initial public offerings has improved in recent months and the firm would monetize assets in its portfolio as opportunities arise.
KKR, which is combining with KKR Private Equity Investors LP, may pursue a public stock listing of discount retailer Dollar General before the year-end, and a listing of hospital firm HCA is also being considered, a source familiar with the situation previously told Reuters.
KPE marked up the value of its investments in portfolio companies Dollar General and HCA for the three months to June 30.
Clearly the market has just started to open up. We went for two years almost where there was basically no public offerings, Kravis said in a conference call. We're certainly sensing a better attitude, much more receptivity, than what we had seen in the first quarter.
KKR is itself planning to become a publicly listed company through a complex deal that will see it combine with Euronext-listed KPE. That transaction is expected on October 1.
Earlier this month, KKR launched an IPO of semiconductor company Avago Technologies. Avago traded at $16.20 on Tuesday, above its IPO pricing of $15 a share.
We're going to continue to focus on monetizing other investments in our portfolio when opportunities like this present themselves, Kravis said.
KKR also will be looking to make investments as the current market prompts firms to divest assets to raise funds. It also aims to build its infrastructure business and mezzanine credit operations.
We're not calling any great bottom in the cycle, said Scott Nuttall, a partner at KKR. We're still clearly in a difficult part of the cycle, the returning of stability has allowed us to get some things done and we continue to see a full pipeline of activity in front of us.
(Reporting by Jessica Hall, editing by Leslie Gevirtz)