Summary
KKR & Co. Inc. (KKR) filed an 8-K on January 2, 2020, detailing a significant internal reorganization completed on December 31, 2019. This reorganization follows KKR's conversion from a Delaware limited partnership to a Delaware corporation in July 2018. The primary objective was to streamline KKR's holding structure by combining intermediate holding companies into a single entity, KKR Group Partnership L.P. Key changes include the elimination of KKR Management Holdings L.P. and KKR International Holdings L.P. as intermediate holding companies, with KKR Group Partnership L.P. now serving as the sole intermediate holding company. This restructuring also involved amendments to partnership agreements and exchange agreements to reflect the new structure. Importantly, the guarantees from the now-eliminated intermediate holding companies for KKR's senior notes were released, with KKR Group Partnership L.P. remaining as the guarantor. The company also acquired KKR Capstone Americas LLC and its affiliates as part of this move.
Key Highlights
- 1KKR completed a significant internal reorganization on December 31, 2019, to simplify its corporate structure.
- 2The reorganization involved combining intermediate holding companies, establishing KKR Group Partnership L.P. as the sole intermediate holding company.
- 3Guarantees on KKR's senior notes previously provided by KKR International Holdings L.P. and KKR Management Holdings L.P. have been released.
- 4KKR Group Partnership L.P. remains the sole guarantor for KKR's outstanding senior notes.
- 5The company's wholly owned general partner now holds approximately a 66% economic interest in the Group Partnership.
- 6KKR acquired KKR Capstone Americas LLC and its affiliates as part of the reorganization.
- 7The filing includes amendments to key partnership and exchange agreements to reflect the new corporate structure.