KKR leads firms into junk sales
Private- equity firms responsible for issuing $366 billion of debt during the leveraged- buyout boom are trying their hand at managing sales of junk bonds and loans as waning takeover volumes prod them to seek new revenue.
KKR & Co. has underwritten $2.7 billion of high-yield bond and loan sales this year, up 54 percent from last year, according to data compiled by Bloomberg. Leon Black's Apollo Global Management LLC (APO) has helped syndicate two leveraged-loan offerings in 2012, the first year it's ranked selling the debt.
"The larger private-equity shops, particularly the ones that are public, are looking for other revenue streams," said Steven Kaplan, a finance professor at University of Chicago's Booth School of Business.