Kohlberg Kravis Roberts (KKR), one of the world's most powerful private equity firms, will go public on the New York stock exchange this year.
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The transaction will involve buying its Amsterdam-listed investment fund and listing the new company in New York.
An original plan to sell $1.25bn (Ј0.6bn) shares to the public fell through because of market turmoil.
"Moving forward with a public listing will allow KKR to do what we do best - grow companies around the world and produce solid returns for our investors from a larger platform and deeper capital base," KKR founders Henry Kravis and George Roberts said.
The company will not be directly offering shares to the public for cash but the listing will give the company more options when raising funds to finance investments.
It will be able to sell shares to shareholders rather than relying purely on bank loans.
Existing shareholders in KKR Private Equity Investors, the Amsterdam-listed fund, will own 21% of the new public company, while KKR executives will hold the rest.
Challenges
Rival Blackstone, which became the first US private equity firm to go public when it listed in June 2007, has seen its shares drop sharply, disappointing the Chinese state investment fund which took a 5% stake last year.
Private equity firms have faced challenges as the cheap financing to fund their deals has dried up amid the credit crunch.
KKR said it made a loss of $117.9m in the first three months of 2008 after a profit of $814.8m in 2007.
Its investments include Toys R Us and Boots.
Founded in 1976, KKR's 1989 buyout of tobacco firm RJR Nabisco was the subject of a best-selling book "Barbarians at the Gate: The Fall of RJR Nabisco".
(BBC)
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