In the tide of U.S. dollar retreat, KKR moves against the current

KKR—the global private equity (PE) giant repeatedly grabbing headlines with its blockbuster acquisitions—has made yet another bold move! Recently, it has set its sights on Northumbrian Water, a UK-based water and wastewater treatment company owned by Hong Kong billionaire Li Ka-shing and the Li family. KKR plans to acquire a 25% stake in the company for $1.02 billion (approximately £867 million)—a premium of 50%. Upon completion of the deal, KKR will hold 25% of the shares, while Cheung Kong Holdings, CK Infrastructure Holdings, and CK Asset Holdings will retain the remaining 75%. Known as the "barbarians at the gate," KKR was founded nearly 45 years ago and rose to prominence by popularizing leveraged buyouts (LBOs) during the 1970s and 1980s—becoming Wall Street’s quintessential corporate conqueror. In recent years, KKR has aggressively expanded into China, investing in high-profile companies such as ByteDance and Xingsheng Youxuan. Last May alone, it invested heavily to acquire Quanyi Health, marking China’s largest-ever buyout transaction in the chain pharmacy sector. Today, this formidable predator remains fiercely ambitious—still actively scripting its China story. 01 The "Barbarian" Renowned for Leveraged Buyouts Founded in 1976 and headquartered in New York, KKR is one of the world’s oldest and most experienced private equity investment firms—nicknamed the "Wolf of Wall Street." Alongside Blackstone, Carlyle, and TPG, it ranks among the "Big Four Global PE Giants." Today, it also stands as one of the most active international PE firms across China and Asia. To date, this powerhouse—renowned for LBOs and management buyouts (MBOs)—manages 17 PE and growth funds and maintains over 20 offices across key economic regions including North America, Europe, Asia, and the Middle East. According to KKR’s official website, its assets under management (AUM) total $471 billion. As of September 30, 2021, the aggregate annual revenue of portfolio companies within KKR’s PE funds amounted to approximately $269 billion. Its performance metrics are equally impressive. KKR’s 2021 fiscal-year financial report revealed net income attributable to parent company common shareholders of $4.561 billion—a 134.37% year-on-year increase—and total revenue of $16.651 billion, up 256.98% year-on-year and exceeding market expectations. Meanwhile, this PE behemoth is replenishing its war chest at an astonishing pace. Notably, in April last year, KKR announced the successful close of its fourth Asia-focused fund—KKR Asian Fund IV—with $15 billion (approx. RMB 98 billion) raised—exceeding its original $12.5 billion target by 25%, making it the largest PE fund ever raised in Asia. Earlier that same year—in January—KKR had already closed two other Asia-dedicated funds within just four days: a $1.7 billion inaugural Asia real estate fund and a $3.9 billion Asia infrastructure fund. KKR’s long-standing interest in China dates back to 2005. That year, it opened its first office in Hong Kong, followed later by offices in Beijing and Shanghai.

How did this top-tier capital firm achieve fame in one fell swoop?

First, let’s take a closer look at KKR itself. Founded in 1976, KKR is one of the world’s most renowned private equity firms. Its name derives from its three founders: Kohlberg, Kravis, and Roberts. KKR is globally celebrated for its distinctive leveraged buyout (LBO) strategy—acquiring target companies using substantial borrowed capital, then repaying the debt with the acquired company’s future cash flows. During the 1970s and 1980s, KKR cemented its status on Wall Street through a string of successful leveraged buyouts. The most iconic example is its 1989 acquisition of RJR Nabisco—the food and tobacco conglomerate. Valued at a staggering $25 billion, the deal set a record at the time. This acquisition battle was not only monumental in scale but also highly dramatic. Both competing bidders employed leveraged buyout tactics, and the bidding process unfolded with multiple twists and turns.

Diamondback, KKR to Acquire Stake in Water Firm for $2.1 Billion

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Diamondback Energy and KKR agreed to acquire a 70% stake in Deep Blue Midland Basin LLC for $2.1 billion, securing critical water supply for their Permian Basin shale operations.

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Diamondback, KKR to Acquire Stake in Water Firm for $2.1 Billion

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