PE firm KKR swings to $1.2 b loss

 Private equity (PE) firm Kohlberg Kravis Roberts & Co KKR posted a substantial loss in 2008 as the global economic downturn took its toll on the firm’s investments.
KKR lost $1.19 billion before taxes last year, compared with pre-tax economic net income of about $815 million in 2007, according to a presentation by the private equity firm.
“Economic net income” generally excludes impact of income taxes, non-cash charges related to vesting of equity-based compensation and amortization of intangible assets. KKR said its averaged adjusted pre-tax economic net income from 2004-07 was $926 million.
KKR said total annual fee income fell 27 per cent to $640 million in 2008. Total assets under management dipped to $48.5 billion from $53.2 billion. The New York firm said it has $15.4 billion of uninvested capital across its three geographic funds: Europe, US and Asia.