Forever known as “barbarians,” after the bestselling book that chronicled their $25 billion takeover of RJR Nabisco, KKR was grilled by Congress for tax avoidance and the aggressive use of debt as they swallowed up RJR and other corporate giants of yesteryear like Wometco Enterprises and Beatrice Foods. “We don’t invest if we don’t like the management team, we don’t invest where we’re not welcome.”. But his strategy seems a departure from KKR’s epoch-defining buyout of RJR Nabisco, the $25 billion megadeal chronicled in the book “Barbarians at the Gate: The Fall of RJR Nabisco.”, “We’re a friendly activist, that’s been a key to our success,” said Robbins, referring to the hedge fund he founded in 2004, Blue Harbour Group. But a funny thing happened on the way to the cliché of shuttered plants, downsized employees and pawned-off assets. Critics argue this brand of investing often puts short-term rewards for shareholders ahead of the long-term health of companies. Don't be fooled, though. Still, his goal is the same: to convince management to enrich stockholders through dividends, stock buybacks, spinoffs and other measures. The Japanese executive said 2,000. Sim took OSIM International public in 2000, selling just over 25% of its shares in a deal that valued the company at just S$71 million. He disagrees with the “barbarian” label coined by authors Bryan Burrough and John Helyar, insisting KKR bought Nabisco in a fair auction and worked profitably alongside management. Gardner Denver is a shining example. China, Japan and South Korea lead the global market in growth thanks to the rise of stressed-out, dual-income households, according to Ritesh Kumar, a senior industry analyst at TechNavio. “Treat them like business partners.”. I’m a graduate of Middlebury College and the Columbia University Graduate School of Journalism, and I’ve worked at TheStreet and Businessweek. “Everybody wins.”, This feel-good plot has two unlikely directors: Henry Kravis and George Roberts, the billionaire cofounders of KKR & Co., the now $200 billion (assets) private equity giant. Even as he was arranging the IPO, he was being courted by potential private investors. ", KKR 'Barbarian at the Gate' banker Cliff Robbins turns into friendly activist. Campbell took full control of Arnott's in 1997, outlaying $420 million to buy the remaining 30 per cent after a hostile $1.2 billion takeover bid in 1993 netted it only 70 per cent. Latter-day activists including Dan Loeb, Bill Ackman and Jeff Smith often wield poison pens and take advantage of invitations to criticize portfolio companies on business television. Follow me on Twitter at @antoinegara, © 2020 Forbes Media LLC. If you back a smart manager who is hard-working and has high integrity, they know how to create a lot of value when things go well -- and protect your capital when things don’t go so well.”. But today there are hundreds of private equity firms. He recalls asking the CEO of one of Japan’s big trading companies how many subsidiaries the company owned. His instincts were right: Hong Kong, it turned out, was at the start of an eight-month tailspin that would wipe nearly $600 billion off its market capitalization that year, its worst slide in seven years.

Io Godfrey Reviews, Arcimoto Lawsuit, North Las Vegas Weather 10 Day Forecast, Kenny Clark Injury, Crow And Eagle Fight, The War Of Art Audiobook, Rougon-macquart Series In Order, Tashaun Gipson Injury, Twister Remake,