Kohlberg Kravis Roberts has lent its support to the Private Equity Principles, a set of best practice guidelines put forth by the Institutional Limited Partners Association calling for interest alignment, strong governance and greater transparency.
The news comes at a time when KKR is currently courting investors for its 11th flagship North American fund, which is targeting between $8 billion to $10 billion.
[The] endorsement is a commitment of our general support for the efforts of ILPA
However neither the firm’s current nor future funds will adhere to every term on the LP wish list put forth by ILPA, according to a KKR statement.
The “endorsement is a commitment of our general support for the efforts of ILPA and other industry supporters to strengthen the basic tenets of the principles with the goal of improving the private equity industry for the long-term benefit of all of its participants”, said KKR’s co-founders and co-chief executives, Henry Kravis and George Roberts.
KKR declined further comment.
KKR’s own balance sheet and executives are responsible for roughly $6 billion of the firm’s current private equity investments, the statement said. ILPA guidelines state a GPs own capital at risk “serves as the greatest incentive for alignment of interests” between fund managers and investors.
Other big name private equity firms to endorse ILPA’s principles include Apollo Management, Coller Capital and Hermes Private Equity. In total, 140 industry organisations have thrown their weight behind the principles.