KKR Confirms No Plans to Launch Buyside Secondaries Business

KKR, the second-largest private equity firm in the world, has confirmed that it has no current plans to launch a buyside secondaries business. This decision was reiterated by Rob Lewin, the firm’s chief financial officer, during the first quarter earnings call on Wednesday.

Lewin stated that the strategy is “not a ‘need to have’ for us” and emphasized that KKR aims to be a “top-three player” in the space it operates in, which they do not believe they will achieve in the secondaries market.

While KKR has considered entering the secondaries space in the past, they have consistently maintained their stance of focusing on their existing business areas. This decision sets them apart from their private equity peers, many of whom have been increasingly entering the secondaries market.

Despite the growing trend in the industry, KKR’s cautious approach to the segment has solidified its position as one of the biggest names in private equity without a dedicated secondaries unit. The firm raised $31 billion in the first quarter and $88 billion in the last 12 months, demonstrating their continued success in their current business areas.

As KKR continues to prioritize their existing operations, the private equity world will be watching to see how their strategy evolves in the future.