Henry R. Kravis

Henry R. Kravis is an American financier and investor, widely recognized as a pioneer of the leveraged buyout (LBO). He co-founded the global investment firm Kohlberg Kravis Roberts & Co. (KKR) in 1976, which became one of the most prominent and influential private equity firms in the world. Kravis's career, particularly his role in the landmark 1988 acquisition of RJR Nabisco, cemented his reputation as a defining figure in modern finance and corporate restructuring.

Early life and education

Henry Kravis was born in Tulsa, Oklahoma, the son of an oil engineer. He attended Eaglebrook School in Massachusetts before completing his secondary education at the Loomis Chaffee School in Connecticut. He earned a bachelor's degree in economics from Claremont McKenna College in 1967. Kravis subsequently pursued a Master of Business Administration from Columbia Business School, graduating in 1969, where he was a classmate and fraternity brother of future business partner George R. Roberts.

Career at Bear Stearns and founding of KKR

Upon graduation, Kravis began his career on Wall Street at the investment bank Bear Stearns in its corporate finance department. There, he worked under Jerome Kohlberg Jr., who was pioneering early leveraged buyout transactions. Alongside his cousin George Roberts, Kravis became a key protégé of Kohlberg. In 1976, citing disagreements with Bear Stearns management over the focus and compensation of their LBO activities, the trio left to establish their own firm. They founded Kohlberg Kravis Roberts & Co. in New York City, with an initial focus on friendly acquisitions of family-owned or divested businesses using significant amounts of debt.

Major leveraged buyouts and business career

KKR executed a series of increasingly large and complex buyouts throughout the 1980s, with Kravis playing a leading role. Major early deals included the acquisitions of Houdaille Industries, Malone & Hyde, and Wometco Enterprises. The firm's activities culminated in the 1988 hostile takeover of the conglomerate RJR Nabisco for $31.4 billion, a transaction chronicled in the bestselling book Barbarians at the Gate. This deal became a symbol of the leveraged buyout era. Under Kravis's leadership as co-Chairman and co-CEO, KKR expanded globally, establishing offices in Menlo Park, California, London, Hong Kong, and Tokyo. The firm later diversified its strategies beyond traditional LBOs into areas like growth equity, infrastructure investment, and credit, and completed landmark deals such as the purchases of TXU and First Data.

Philanthropy and political involvement

Kravis is a noted philanthropist, with giving focused on education, arts, and medicine. He has served as Chairman of the Board of Trustees of his alma mater, Claremont McKenna College, whose Kravis Center is named for him. He and his wife, economist Marie-Josée Drouin, are major benefactors of the Metropolitan Museum of Art, Mount Sinai Hospital, and the Council on Foreign Relations. Politically, Kravis has been a prominent supporter and fundraiser for the Republican Party, contributing to candidates including George W. Bush, Mitt Romney, and John McCain. He served on the President's Council on Jobs and Competitiveness under President Barack Obama.

Personal life

Kravis has been married three times. His first marriage was to Hedi Shulman, with whom he had two children. He was subsequently married to fashion designer Carolyne Roehm. Since 1995, he has been married to Canadian economist Marie-Josée Drouin, a former president of the Hudson Institute and a member of the board of the Museum of Modern Art. Kravis maintains residences in New York City, Southampton, New York, and Vail, Colorado. An avid art collector, he is also known for his involvement in New York society and charitable circles.

Category:American businesspeople Category:American financiers Category:1944 births Category:Living people