The Firm is acting as lead counsel to KKR in connection with its acquisition of all of the assets, and assumption of all of the liabilities, of KKR Private Equity Investors, L.P. (KPE), KKR’s publicly traded affiliate listed on Euronext Amsterdam. In conjunction with the acquisition, which is scheduled to close in the fourth quarter of this year, KKR will become publicly listed on the New York Stock Exchange under the symbol “KKR.” KPE unitholders will receive 21% of the equity of the combined business as well as contingent value interests providing consideration of up to an additional 6% of the equity of the combined business as of the completion of the transaction to the extent that KKR units trade below a specified threshold, tied to KPE’s June 30, 2008 net asset value, three years after completion of the transaction. KKR principals will own the remaining 79% of the combined business and are not selling any equity interests in the transaction.
The Simpson Thacher team for the transaction includes Alan Klein, Joseph Kaufman, Arjun Koshal, Chris May, Justin Cooke, Ben Wolf, Justus Morris and Elsa Wang (Corporate), Steven Todrys and Jenifer Marsh (Tax), Alvin Brown (Executive Compensation and Employee Benefits), Fagie Hartman and Andrew Janis (Labor), Lori Lesser and Sheila Brodbeck (IP) and Chi Pan (Summer Associate).