Joe Bae, left, and Scott Nuttall
Joe Bae and Scott Nuttall, co-presidents and co-chief operating officers at KKR & Co., were named co-CEOs of the company Monday, replacing founders Henry Kravis and George Roberts at the helm of the New York-based alternatives investment giant.
Messrs. Kravis and Roberts, who established KKR & Co. in 1976 together with Jerome Kohlberg, have taken on the titles of executive co-chairman of KKR’s board of directors, effective immediately, a KKR news release said.
The founders said in the news release that Messrs. Bae and Mr. Nuttall, in their current roles, have “taken the firm to new heights.”
They credited Mr. Bae with leading KKR’s “expansion in Asia, building one of the largest and most successful platforms in the market.”
Messrs Kravis and Roberts praised Mr. Nuttall as the architect of initiatives such as KKR’s public listing, “developing the firm’s balance sheet strategy, overseeing the development of KKR’s public markets businesses in the credit and hedge fund space as well as the creation of the firm’s capital markets, capital raising and insurance businesses.”
They went on to say they’re looking forward to working with Messrs. Bae and Nuttall to “fulfill our mission of fortifying companies and helping secure the retirements and livelihoods of the hundreds of millions of people around the world who depend on our support and investment expertise.”
The elevation of Messrs. Bae and Nuttall is part of a transition that began in 2017 when the pair were appointed co-presidents and co-chief operating officers, said spokeswoman Kristi Huller in an email.
“Since then, George, Henry, Joe and Scott have led the firm together, working closely on firm strategy, while Joe and Scott have run day-to-day operations,” Ms. Huller said.
Messrs. Kravis and Roberts will spend time on strategy, mentoring, fostering culture, building and strengthening KKR’s network and investments, she said. They remain involved as KKR’s executive co-chairmen and KKR’s two largest shareholders, Ms. Huller added.
Also on Monday, KKR announced a reorganization to further align the interests of its current and future leadership with its commons stockholders, a news release said. In a transaction expected to be completed in 2022, KKR will, among other actions, merge with KKR Holdings LP, an entity through which current and former KKR employees hold interests in the firm. KKR Holdings unitholders will receive one share of KKR common stock for each of their units as well as a pro rata share of another 8.5 million KKR common stock. KKR will also eliminate its super voting shares, its Series I preferred stock, on Dec. 31, 2026, or earlier. Currently, common stockholders can vote on a number of corporate actions such as a sale of all or most of its assets but not on others matters including the election of directors. Series I stockholders elect the directors. When KKR’s series I preferred stock is eliminated, common stockholders will be able to vote for directors.
KKR had $428.9 billion in assets under management as of June 30.
