KKR’s 13th North America-focused private equity fund is noteworthy for something more than just its size (at $19 billion, it is the firm’s largest fund close ever). For the first time, the New York-listed mega firm will implement its employee ownership programme at every company in which the fund takes a majority stake, it said in a statement.
KKR has been leading the way when it comes to sharing the economic upside with portfolio company workers. While the typical private equity model allows senior management of portfolio companies to participate in the equity upside of a buyout, KKR has been selectively extending this to the entire workforce on some of its investments in the industrial sector. The firm says is has awarded “billions of total equity value to over 45,000 non-senior employees across over 25 companies”.
KKR was among the 60 organisations to found Ownership Works, a nonprofit created to support public and private companies transitioning to shared ownership models.