KKR Struggles to Lure Money to a New Fund

After poor returns, investors have grown skeptical of megadeals
Co-founder Henry Kravis is best known for KKR’s 1989 takeover of RJR Nabisco Photograph by Shannon Stapleton/Reuters

KKR co-founders Henry Kravis and George Roberts are having a hard time raising enough money to meet an $8 billion target for their biggest buyout fund in six years. Since they started selling it more than 18 months ago, the North American XI Fund has gathered $6.2 billion, according to KKR’s earnings report for the third quarter, released on Oct. 26. The average time private equity firms need to raise money for a fund these days is 13 months, according to research firm Preqin.

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