KKR (KKR) Chairmen Henry Kravis Interview

KKR (KKR) Chairmen Henry Kravis sees a compelling investing opportunity in the energy space

“Energy is an important focus of where we’re investing today at KKR.  The shale operators, they need capital.  We’ve found extremely good operators down in the Marcellus field in Pennsylvania and Eagleford shale in Texas.  If you don’t drill on a lease for shale within a short period of time, you lose that lease so they needed the capital in order to maintain their leases.  In one case, we made 8 times our money.  We think energy investing today is a good hedge against inflation.  We’re doing everything from buying non-core assets out of the major oil companies.  We have a 50 person operating team out of Tulsa who have engineering expertise.  There’s a need to operate these oil properties more efficiently.”

KKR (KKR) Chairmen Henry Kravis on investing in Asia

“Where we’re focusing our efforts in Asia is very much based on the consumer.  The consumer is moving up the socioeconomic ladder, in China in particular, more and more people are moving to the urban centers.  And they want what the west has.”

 

Source: Video Interview June 12, 2016 https://www.youtube.com/watch?v=JYt-pP5cgrQ