Private Equity News

Finance is critical to entrepreneurship. But we often think of entrepreneurship too narrowly, as the creation of new companies, rather than broader notions of innovation, discovery, and business judgment, which can be exercised in a variety of contexts. Hence, as entrepreneurship researchers, teachers, and practitioners, we are interested not only in early-stage venture funding, but also in funding — both private and public — for ongoing concerns. (Here is some of my own work on middle-market buyouts of mature companies.)

Today’s New York Times features some interesting comments from Henry Kravis, co-founder of the famous (or infamous, depending on your perspective) LBO firm Kohlberg Kravis Roberts. Kravis, like other large private-equity firms, is bullish on commodities and energy, and also on emerging markets. But don’t look for the mega deals:

Mr. Kravis warned not to expect any legendary takeovers, like the $25 billion leveraged buyout of RJR Nabisco in 1988 that made his firm a household name and spurred the book “Barbarians at the Gate.”

“Our business is not the mega deal,” he said, adding that 90 percent of K.K.R.’s acquisitions are companies worth less than $5 billion.

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