Briefs

Private equity firm KKR and Chesapeake Energy, the second-largest U.S. natural-gas producer, are joining forces to buy interests in oil and gas royalties. They will offer property owners cash upfront, even before they’ve ascertained how many barrels lie under the ground. In exchange, the two firms will get rights to owners’ future shares of production revenue. KKR will commit an initial $225 million, and Chesapeake will provide $25 million in addition to finding, acquiring, and managing the investments. This is Chesapeake’s first partnership that will acquire royalties, rather than a direct interest in fields. KKR’s move is part of a push by private equity firms to make more energy investments.

IBM’s Watson computer, which beat champions of the quiz show Jeopardy!, will soon be advising Wall Street on investment risk, portfolios, and clients. Citigroup has signed up to be Watson’s first financial services client. The supercomputer will help analyze customer needs and process financial, economic, and client data to advance and personalize digital banking. IBM expects Watson to generate billions in new revenue by 2015 and has already sold the computer’s services to health-care clients.