Henry Kravis

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Henry Kravis_table_infobox_0

Henry KravisHenry Kravis_header_cell_0_0_0
Personal detailsHenry Kravis_header_cell_0_1_0
BornHenry Kravis_header_cell_0_2_0 (1944-01-06) January 6, 1944 (age 76)

Tulsa, Oklahoma, U.S.Henry Kravis_cell_0_2_1

Political partyHenry Kravis_header_cell_0_3_0 RepublicanHenry Kravis_cell_0_3_1
Spouse(s)Henry Kravis_header_cell_0_4_0 Hedi Shulman (Divorced)

Carolyne Roehm ​ ​(m. 1985; div. 1993)​

Marie-Josée Drouin ​(m. 1994)​Henry Kravis_cell_0_4_1

ChildrenHenry Kravis_header_cell_0_5_0 3Henry Kravis_cell_0_5_1
EducationHenry Kravis_header_cell_0_6_0 Claremont McKenna College (BA)

Columbia University (MBA)Henry Kravis_cell_0_6_1

Net worthHenry Kravis_header_cell_0_7_0 US$6.4 billion (February 2020)Henry Kravis_cell_0_7_1

Henry R. Kravis (born January 6, 1944) is an American businessman, investor, and philanthropist. Henry Kravis_sentence_0

He is the co-founder of KKR & Co. Inc., a global investment firm with a market cap of approximately $24.7 billion as of November 2019. Henry Kravis_sentence_1

He has an estimated net worth of $6.4 billion as of February 2020, ranked by Forbes as the 317th richest person in the world. Henry Kravis_sentence_2

A political conservative, his lavish lifestyle has been criticized by activists looking to reform private equity regulations and restrict the practice of leveraged buyouts he pioneered. Henry Kravis_sentence_3

His buyout of RJR Nabisco was portrayed in the 1989 book and 1993 film Barbarians at the Gate. Henry Kravis_sentence_4

Early life Henry Kravis_section_0

Kravis was born into a Jewish family in Tulsa, Oklahoma, the son of Bessie (née Roberts) and Raymond Kravis, a successful Tulsa oil engineer who had been a business partner of Joseph P. Kennedy. Henry Kravis_sentence_5

Kravis began his education at Eaglebrook School ('60), followed by high school at the Loomis Chaffee School, where he participated in student government and was elected vice president of the student council his senior year. Henry Kravis_sentence_6

He attended Claremont McKenna College (then known as Claremont Men's College) and majored in economics. Henry Kravis_sentence_7

He was a member of the CMC varsity golf teams for four years and was a member of the Knickerbockers student service organization. Henry Kravis_sentence_8

He served as his sophomore class secretary-treasurer. Henry Kravis_sentence_9

He graduated from CMC in 1967 before going on to Columbia Business School, where he received an MBA degree in 1969. Henry Kravis_sentence_10

Career Henry Kravis_section_1

Kravis at Bear Stearns Henry Kravis_section_2

See also: Early history of private equity Henry Kravis_sentence_11

After working at various jobs in New York City's financial sector, he and his first cousin, George R. Roberts, joined the staff of Bear Stearns. Henry Kravis_sentence_12

There, they worked under the corporate finance manager, Jerome Kohlberg, Jr.. Henry Kravis_sentence_13

They both became partners at Bear Stearns at very young ages, 30 and 31. Henry Kravis_sentence_14

Working for Bear Stearns in the late 1960s and early 1970s, Kravis, alongside Kohlberg and Roberts, began a series of what they described as "bootstrap" investments. Henry Kravis_sentence_15

In the following years, Kohlberg and later Kravis and Roberts would complete a series of buyouts including Stern Metals (1965), Incom (a division of Rockwood International, 1971), Cobblers Industries (1971), and Boren Clay (1973) as well as Thompson Wire, Eagle Motors and Barrows through their investment in Stern Metals. Henry Kravis_sentence_16

Although they had a number of highly successful investments, the $27 million investment in Cobblers ended in bankruptcy. Henry Kravis_sentence_17

Kravis and his associates created a series of limited partnerships to acquire these various corporations, ones they judged were performing well below their sales and profit potential or where there were untapped financial assets that could be monetized. Henry Kravis_sentence_18

Kohlberg Kravis Roberts Henry Kravis_section_3

Main article: Kohlberg Kravis Roberts Henry Kravis_sentence_19

By 1976, tensions had built up between Bear Stearns and the trio of Kohlberg, Kravis and Roberts leading to their departure and the formation of Kohlberg Kravis Roberts in that year. Henry Kravis_sentence_20

Most notably, Bear Stearns executive Cy Lewis had rejected repeated proposals to form a dedicated investment fund within Bear Stearns and Lewis took exception to the amount of time spent on outside activities. Henry Kravis_sentence_21

Kravis and Roberts invested $120,000 of their own capital in their new firm. Henry Kravis_sentence_22

Early investors in KKR included the Hillman Family and the Griffith family (who are also large shareholders in MGM and Time-Warner). Henry Kravis_sentence_23

By 1978, with the revision of the ERISA regulations, the nascent KKR was successful in raising its first institutional fund with approximately $30 million of investor commitments. Henry Kravis_sentence_24

In 1987, Jerome Kohlberg, Jr. resigned from KKR, and Henry Kravis and George Roberts continued to lead the firm. Henry Kravis_sentence_25

Under Kravis and Roberts the firm was responsible for the 1988 leveraged buyout of RJR Nabisco. Henry Kravis_sentence_26

At a cost of $31.4 billion, it was then the highest price ever paid for a commercial enterprise. Henry Kravis_sentence_27

The publicity surrounding the event led to the story being dramatized in the book and film, Barbarians at the Gate. Henry Kravis_sentence_28

Kravis was portrayed in the film by actor Jonathan Pryce. Henry Kravis_sentence_29

In early 1995, KKR divested its remaining holdings in RJR Nabisco, taking an overall loss on the deal. Henry Kravis_sentence_30

A journalist for the New York Times wrote a few years later that "the deal will go down in history as showing just how difficult it can be to get out of a huge deal that goes badly, and of the perils of putting too much money on one investment." Henry Kravis_sentence_31

KKR pledged not to commit so much of its fund to a single investment again in the future. Henry Kravis_sentence_32

However, other investments proved more profitable, and the fund still did well overall. Henry Kravis_sentence_33

The list of companies in which Henry Kravis's KKR has invested over the years includes health care provider Hospital Corporation of America (HCA), TXU, Playtex, Beatrice Foods, Safeway, Toys "R" Us, Borden, First Data and Regal Entertainment Group. Henry Kravis_sentence_34

A takeover of the battery maker Duracell proved particularly profitable. Henry Kravis_sentence_35

On December 24, 2013, KKR closed their first real estate specific investment fund, which raised $1.2 billion of new money to invest. Henry Kravis_sentence_36

With additional funds from within KKR, the new fund provided over $1.5 billion to utilize. Henry Kravis_sentence_37

In July 2017, Kravis and Roberts announced that they would eventually be succeeded by Joseph Y. Bae and Scott C. Nuttall, who were named co-presidents and co-chief operating officers so that they might gradually take over daily operations. Henry Kravis_sentence_38

Personal life Henry Kravis_section_4

Kravis has been married three times. Henry Kravis_sentence_39

His first marriage to Helene Diane "Hedi" Shulman ended in divorce. Henry Kravis_sentence_40

They had three children, Harrison S. Kravis (b. Henry Kravis_sentence_41

1972, d. 1991 car accident), Robert R. Kravis (b. Henry Kravis_sentence_42

1973), and Kimberly Kravis Schulhof (b. Henry Kravis_sentence_43

1975). Henry Kravis_sentence_44

Hedi remarried to James Thompson Ruger, son of William B. Ruger and died of cancer on April 2, 1997 at age 49. Henry Kravis_sentence_45

Kravis later married New York designer Carolyne Roehm (born Carolyne Jane Smith) in 1985, but the marriage ended in divorce in 1993. Henry Kravis_sentence_46

The home decorated for the couple by Robert Denning and Vincent Fourcade was parodied in the 1990 movie The Bonfire of the Vanities. Henry Kravis_sentence_47

Kravis is currently married to a prominent Canadian economist, and former columnist and TV personality in Canada, Marie-Josée Drouin. Henry Kravis_sentence_48

She sits on the boards of the Memorial Sloan-Kettering Cancer Center, the Robin Hood Foundation, and is the president of the Museum of Modern Art board of directors. Henry Kravis_sentence_49

Kravis mainly lives in New York City and has a seasonal residence in Palm Beach, Florida; he also owns homes in New York City; Southampton, New York; Paris; and Sharon, Connecticut. Henry Kravis_sentence_50

Politics Henry Kravis_section_5

A supporter of Republican politics, he was a supporter and fundraiser for President George W. Bush and John McCain. Henry Kravis_sentence_51

He was also a major contributor to the 1992 re-election campaign of President George H. W. Bush. Henry Kravis_sentence_52

In 1997, Henry Kravis joined with Lewis M. Eisenberg to establish the Republican Leadership Council. Henry Kravis_sentence_53

In 2017, he also contributed $1 million to Donald Trump's presidential inauguration. Henry Kravis_sentence_54

Philanthropy and public positions Henry Kravis_section_6

The Henry R. Kravis Prize in Nonprofit Leadership, established in 2006, identifies extraordinary leaders in the nonprofit sector, celebrates their accomplishments and shares their best practices with others. Henry Kravis_sentence_55

The prize is presented and administered by Claremont McKenna College (CMC) and Marie-Josée and Henry Kravis. Henry Kravis_sentence_56

Kravis is an alumnus and trustee of Claremont McKenna College. Henry Kravis_sentence_57

The Kravis Prize is affiliated with the Kravis Leadership Institute, a research institute at Claremont McKenna. Henry Kravis_sentence_58

A formal award ceremony celebrates the recipient's accomplishments, and $250,000 is directed to a nonprofit organization designated by the recipient. Henry Kravis_sentence_59

Kravis also funds the Henry Kravis Leadership Institute that sponsors the Leadership Studies programs at Claremont McKenna College, and the "Henry Kravis Internships for Teachers of Color" program. Henry Kravis_sentence_60

He has also financed the construction of extensive facilities at Middlesex School (Kravis House), the Eaglebrook School (Kravis Dorm), Deerfield Academy (Kravis Arena), and The Loomis Chaffee School (Kravis Hall). Henry Kravis_sentence_61

He is a benefactor and a past chairman of New York's public television station and sits on the board of the Metropolitan Museum of Art. Henry Kravis_sentence_62

A trustee of the Mount Sinai Medical Center, Henry and wife Marie-Josée Kravis donated $15 million to establish the "Center for Cardiovascular Health" as well as funding a professorship. Henry Kravis_sentence_63

They have also endowed the chair in human oncology at Memorial Sloan-Kettering Cancer Center in New York. Henry Kravis_sentence_64

He previously co-chaired with Jerry Speyer the influential Partnership for New York City, founded by David Rockefeller in 1979, and now sits on its board of directors. Henry Kravis_sentence_65

He created the New York City Investment Fund, a non-profit organization to create jobs and new business in New York City. Henry Kravis_sentence_66

He is a trustee of the Council on Foreign Relations in New York, Chairman of Sponsors for Educational Opportunity, and is a member of the executive committee of The Business Council for 2011, 2012, 2013 and 2014. Henry Kravis_sentence_67

He co-chairs the Columbia Business School Board of Overseers where he recently pledged a gift of $100 million to support the school's new campus project and is a vice-chairman of Rockefeller University. Henry Kravis_sentence_68

Awards and Honors Henry Kravis_section_7

Henry Kravis_unordered_list_0

  • Golden Plate Award of the American Academy of Achievement, 1987Henry Kravis_item_0_0
  • Henry Kravis is named chairman of Sponsors for Educational Opportunity, 2014Henry Kravis_item_0_1
  • Investment Management's Lifetime Achievement Award, 2015Henry Kravis_item_0_2
  • Columbia Business School's Centennial Award, 2016Henry Kravis_item_0_3
  • Atlantic Council's Distinguished Leadership Award, 2016Henry Kravis_item_0_4
  • Carnegie Medal of Philanthropy, 2019Henry Kravis_item_0_5

See also Henry Kravis_section_8

Henry Kravis_unordered_list_1

Credits to the contents of this page go to the authors of the corresponding Wikipedia page: en.wikipedia.org/wiki/Henry Kravis.