Kkr Investments Reap Huge Gains

Kohlberg Kravis Roberts & Co. pumped $950 million of its capital into acquisitions last year and reaped $1.6 billion of gains on its investments, according to the firm’s annual report.

KKR, the biggest U.S. buyout group, made five acquisitions last year, spending a total of $5.11 billion, including borrowed money. It profited from selling stakes in such companies as Duracell International Inc., Autozone Inc. and Safeway Inc.

While the firm benefited from surging stocks, record prices also made it more difficult to pick new targets. Its purchases last year were smaller than many of the companies KKR bought during the 1980s.

Meantime, KKR is trying to raise a new investment fund that could be as large as $5 billion, money managers said. State pension funds from Washington, Oregon and Michigan already agreed to invest in the fund.