What can a retired U.S. General do for a private equity giant? We're about to find out as KKR hires four-star general and former CIA director David Petraeus.
David Petraeus, the former U.S. Army general who resigned last year a CIA chief, is starting over at... [+]
The $73 billion New York private equity firm said it's bringing Petraeus on to serve as chairman of the newly created KKR Global Institute.
The institute will deal with macro-economic issues like the role of central banks in the world since the crisis, changes in public policy and other areas where KKR has interests like environmental and social issues that would influence its investment decisions.
There's no doubting Petraeus has a powerful Rolodex--one that KKR is likely to leverage. Co-founder Henry Kravis said in a statement "I have long known and respected General Petraeus...we are always looking to sharpen the ‘KKR edge.'"
General Petraeus resigned as C.I.A. director in November after it was discovered he was having an extramarital affair with his biographer.
Since its founding as a leveraged buyout shop in 1976 KKR has launched some of the most successful deals including the $25 billion highly leveraged takeover of RJR Nabisco which generated nearly $1 billion in fees. It's more recent deals include retailer
What started back then as a leveraged buyout shop has since evolved into a more diverse investment company with a booming asset management division with some $28 billion in assets. The company has added a fund of funds business, launched retail mutual funds, capital markets, real estate and energy businesses.
With Petraeus on board, who holds a Ph.D. in international relations from Princeton University, KKR is hoping to garner some more influence around the globe.
