Jerome Kohlberg; Limited partner, Kohlberg & Co., Mount Kisco, N.Y.(P&I at 30: The difference-makers)(Biography)

Pensions & Investments, October, 2003 by Jacobius, Arleen

Byline: Arleen Jacobius Jerome Kohlberg mentored Henry Kravis and George Roberts when the three were at Bear Stearns Inc., New York. The three investment bankers worked together at Bear Stearns for eight years, developing the leveraged buyout model in which they bought well-established private companies with predictable revenue and cash flow; borrowed nearly all the money they needed; streamlined the companies' expenses; used the profits to pay down the debt; and sold the companies at a profit within five to seven years.

They left Bear Stearns 1976 and formed Kohlberg, Kravis, Roberts & Co., New York, to solicit banks and investors to buy small companies with debt. In essence, they developed the leveraged buyout, and the firm became a Wall Street powerhouse....

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