UPDATE: Oppenheimer Upgrades KKR to Outperform on Investment Monetization
Oppenheimer raises its rating on KKR (NYSE: KKR) from Perform to Outperform and establishes a price target of $18.
Oppenheimer notes, "We are upgrading KKR to Outperform from Perform as the company has recently made great headway in monetizing investments in its large and critically important 2006 Fund. This $17.6B fund represents 44% of KKR's invested private equity capital, but has not yet generated significant "cash carry" for distributions despite some $5B in gains, of which about $2B have been realized. If and when the 2006 Fund crosses over, cash carry AUM should increase from $10B to $27B and the estimated gains that can generate cash carry for distributions will likely increase from roughly $4B to $9B. Unlike most peers, the 2006 Fund does not have to overcome any "hurdle" to generate carry."
KKR closed at $12.89 on Friday.
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