Private equity / "alternative asset" specialist KKR (founed by Henry Kravis and George Roberts in 1976) have announced the creation of a new asset management division.
KKR's original business model was using junk bonds to buy underperforming companies, rework the balance sheets and sell on for profit. This is the idea of the "leveraged buyout". Their most famous transaction was the LBO of RJR Nabisco in 1989 for $25bn, the storyline behind "Barbarians at the Gate".
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