KKR Is Closing $23 Billion NAX4 Megafund

KKR (NYSE:KKR) has announced the closure of its KKR North America Fund XIV, known as NAX4. This fund, dedicated exclusively to private equity investments in North America, has raised approximately $23 billion — making it the largest private equity fund focused solely on the region, KKR stated in a press release. NAX4 attracted a wide array of investors, including public and private pension plans, sovereign wealth funds, and insurance companies, among others. The fund aims to continue its predecessor’s strategy of supporting companies with broad-based employee ownership programs, which KKR views as essential for fostering stronger companies and expanding financial opportunities. "Raising our largest fund in this environment reflects the consistency of our approach and the work our teams are doing inside our portfolio companies every day," said Pete Stavros and Nate Taylor, Global Co-Heads of Private Equity at KKR. "Our approach is straightforward. We look for fundamentally good companies and work alongside management teams to make them better—operationally and culturally. We've built a platform designed to support that work, and we see a strong pipeline of opportunities ahead." Last month, KKR acquired US bakery chain Nothing Bundt Cakes from private equity firm Roark Capital for more than $2 billion. KKR is also in advanced talks to sell private jet fixed-base operator Atlantic Aviation to Apollo Global Management in a deal expected to value the company at approximately $10 billion. KKR paid $4.5 billion for the aviation company in 2021. Earlier this week, KKR and Taiyo Holdings said that an affiliate of KKR plans to launch a tender offer to acquire all outstanding shares of the Japanese electronic materials maker, marking a move to take the company private. KKR announced its intention to acquire all common shares of Taiyo Holdings at a proposed price of 4,750 Japanese yen per share. KKR boasts a nearly half-century history of investments in North America. Over the last ten years, the firm has achieved a gross IRR of 23% and a net IRR of 19% across the three predecessor funds to NAX4. Additionally, KKR has doubled its private equity assets under management since 2020, now handling approximately $229 billion. Photo by T. Schneider via Shutterstock