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KKR to give Fidelity clients access to offerings by units
By MarketWatch
Last Update: 5:55 AM ET Jun 8, 2009
TEL AVIV (MarketWatch) -- Kohlberg Kravis Roberts & Co. will give customers of Fidelity Investments access to initial public offerings and other stock offerings from the private-equity firm's companies.
Under an agreement the companies announced Monday, KKR gains a distribution channel for its capital-markets business, which underwrites securities offerings for the parent's companies.
Fidelity's customers get to buy in to IPOs and follow-on offerings.
The Wall Street Journal said Fidelity's retail and institutional brokerage clients don't normally have the same access to IPOs as clients of investment banks that have large underwriting businesses, like Merrill Lynch BAC and Morgan Stanley. MS
"While it's no secret that the IPO market has slowed over the last couple of years, we are beginning to see signs that it may be picking up momentum," said Mark Haggerty, president of Fidelity Capital Markets, the institutional trading division of Fidelity Investments, in a statement.
With a portfolio of nearly 50 companies that generate more than $200 billion in annual revenue, "KKR will provide a significant source of investment opportunities for our customers" in coming years, he said.
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