KKR & Co (KKR.N) transforms into a corporation on Sunday, a change that should help the U.S. private equity firm tap a new pool of investors for its stock.
What remains to be seen is if, given the new option, active fund managers will want to buy what KKR is selling. The firm’s rivals will meanwhile be keeping an eye on investor demand to judge if they should follow suit.
The change by KKR, which made its name through leveraged buyouts in Corporate America in the 1980s, to so-called C-Corp from a publicly traded partnership (PTP) will mean a bigger tax bill. But it also opens the door to more investors, including some of the world’s biggest mutual funds.
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