KKR & Co is planning to raise $1.5bn through a mandatory convertible preferred stock offering, with proceeds earmarked to increase stakes in companies within its core private equity portfolio, according to a report by Reuters.
The fundraising move comes as private equity firms position themselves for an anticipated uptick in deal activity, spurred by US President Donald Trump’s policies aimed at deregulation, lower corporate taxes, and business-friendly reforms.
The convertible preferred stocks will automatically convert into common shares on or around 1 March, 2028, unless redeemed or converted earlier.
Morgan Stanley and KKR Capital Markets are acting as joint book-running managers for the offering.
KKR’s stock declined 4% in pre-market trading following the announcement, extending a 10% year-to-date decline. The firm currently holds a market capitalisation of $118.1bn, according to LSEG data.
