Yeah, more KKR news. It seems that each passing day brings another KKR headline. The firm’s KKR Europe III fund is expecting a final close of $7B after an 18-month fund raising period, which is in line with the firm’s last effort in the region, KKR Europe II, but well below the $10B they had expected to raise. While on the surface this may look troublesome, one has to take into account that large-cap deals are still painfully slow to come by and having too large a fund right now may not be in line with current market conditions, i.e. while many would instinctively wish to raise ever larger funds, that mentality may not be appropriate for the times. Plus a $7B fund is still tremendously large for Europe.
Also, don’t ever count KKR as down. They’re pioneers of the industry, a great firm, and garner much deserved attention (sometimes good, sometimes bad), and as business school students seeking to have successful careers in private equity after graduation we should follow the firm with much interest. We’re certain to have more headlines to follow soon!