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KKR swings to a first-half loss

September 23, 2008|From Bloomberg News

Private equity firm Kohlberg Kravis Roberts & Co., which is planning to go public this year, posted $1.12 billion in investment losses in the first half of the year, wiping out net income for the period.

The net loss for the first six months was $1.1 million, compared with net income of $667.4 million a year earlier, the New York company said Monday in a regulatory filing. Investment profit was $3.37 billion a year earlier amid a record boom in leveraged buyouts.

KKR and private equity competitors are struggling to complete takeovers after banks and investors cut off financing that had fueled a two-year buyout boom.

"The lack of credit has materially hindered the initiation of new, large-sized transactions for our private equity segment and, together with declines in valuations of equity and debt securities, has adversely impacted our recent operating results," KKR said in its filing with the Securities and Exchange Commission.

The buyout titan is pushing ahead with a public listing on the New York Stock Exchange.

KKR had $60.7 billion in assets under management as of June 30, according to the filing.

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