KKR & Company is sweetening terms for its new $8-10 billion buyout vehicle, the KKR North American XI Fund, The Wall Street Journal reports. The private equity firm is offering investors the choice between a lower management fee and more favorable split on fees charged to the portfolio companies that the buyout firm acquires, including transaction and monitoring fees.
KKR will also include a 7% preferred return hurdle before the general partner receives any of its share of investment profits. The firm will offer preferential terms to limited partners that commit at least $500 million to the fund.
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