KKR facing a tougher sell; Pension officials not enamored by company's plan to raise $1.25 billion in IPO, preferring to work with private firms.(planning of Kohlberg Kravis Roberts & Co.)

Pensions & Investments, July, 2007 by Jacobius, Arleen

Byline: Arleen Jacobius The next time Kohlberg Kravis Roberts & Co. executives knock on pension fund doors, they might not get as warm a reception as they've gotten in the past. Leading public pension fund officials say they are concerned about KKR's plan to raise $1.25 billion in an initial public offering.

KKR executives, who filed documents with the Securities and Exchange Commission on July 3, would be the second top-tier buyout firm to go public, following New York-based Blackstone Group LP's IPO earlier this year. "Long term, I'm concerned. These firms have been private, and it has been a very good and effective structure for them,'' said Christopher Ailman, chief investment officer for the $171.1 billion California State Teachers' Retirement...

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