Jerome Kohlberg

Jerome Kohlberg was a renowned American businessman and Private equity investor, best known for co-founding Kohlberg Kravis Roberts (KKR), a leading global investment firm, alongside Henry Kravis and George Roberts. Kohlberg's career spanned over five decades, during which he worked with notable figures such as Ted Forstmann, Henry Paulson, and Stephen Schwarzman. His investment philosophy was influenced by his experiences at Bear Stearns and Lazard Frères, where he worked with prominent financiers like Joseph Perella and Felix Rohatyn. Kohlberg's legacy is closely tied to the development of the Leveraged buyout (LBO) industry, which was popularized by KKR's successful deals, including the acquisition of RJR Nabisco.

● Early Life and Education

Jerome Kohlberg was born in New York City, New York, to a family of modest means, and grew up in a neighborhood surrounded by Columbia University and Barnard College. He attended Dewitt Clinton High School and later enrolled at Swarthmore College, where he studied Economics and developed an interest in Finance. After graduating from Swarthmore College in 1946, Kohlberg went on to earn his MBA from Harvard Business School in 1948, where he was exposed to the teachings of prominent professors like George David Smith and Alfred D. Chandler Jr.. During his time at Harvard Business School, Kohlberg was influenced by the ideas of Joseph Schumpeter and John Maynard Keynes, which shaped his understanding of Capital markets and Investment banking.

● Career

Kohlberg began his career in Investment banking at Bear Stearns, where he worked alongside notable figures like Cy Lewis and Alan Greenberg. In the 1960s, he joined Lazard Frères, a prestigious investment bank, where he worked with Felix Rohatyn and Michel David-Weill on various Mergers and acquisitions deals, including the acquisition of International Telephone and Telegraph by Harold Geneen. Kohlberg's experience at Lazard Frères and Bear Stearns prepared him for his future role as a co-founder of Kohlberg Kravis Roberts (KKR), which would become a leading player in the Private equity industry, rivaling firms like Blackstone Group and Carlyle Group. During his career, Kohlberg also interacted with prominent business leaders like Warren Buffett, Carl Icahn, and T. Boone Pickens, who were known for their Activist investing strategies.

● Kohlberg Kravis Roberts

In 1976, Jerome Kohlberg co-founded Kohlberg Kravis Roberts (KKR) with Henry Kravis and George Roberts, with the goal of creating a firm that would specialize in Leveraged buyouts (LBOs) and Private equity investments. KKR's early success was fueled by deals like the acquisition of Gibson Greetings and Maicom, which demonstrated the potential of the LBO model. Kohlberg's experience and network played a crucial role in KKR's growth, as the firm expanded its operations and invested in companies like RJR Nabisco, Beatrice Companies, and Safeway Inc.. KKR's success was also influenced by the firm's ability to attract top talent, including Scott Nuttall, Alex Navab, and Joseph Bae, who would go on to become prominent figures in the Private equity industry.

● Personal Life

Jerome Kohlberg was known for his low-key and private personality, which contrasted with the high-profile nature of his business dealings. He was married to Nancy Kohlberg, and the couple had two children, James Kohlberg and Jennifer Kohlberg. Kohlberg was also a philanthropist, supporting institutions like NewYork-Presbyterian Hospital and Columbia University, where he served on the board of trustees. His philanthropic efforts were inspired by his interactions with notable philanthropists like David Rockefeller and John D. Rockefeller III, who were known for their support of Education and Healthcare initiatives.

● Later Life and Legacy

Jerome Kohlberg passed away on July 30, 2015, at the age of 90, leaving behind a legacy as one of the pioneers of the Private equity industry. His contributions to the development of the LBO model and the growth of Kohlberg Kravis Roberts (KKR) have had a lasting impact on the world of Finance and Investment banking. Kohlberg's legacy is also reflected in the success of his former colleagues and partners, including Henry Kravis and George Roberts, who continue to play important roles in the Private equity industry. Today, KKR is a global investment firm with operations in New York City, London, Tokyo, and Hong Kong, and its success is a testament to Kohlberg's vision and entrepreneurial spirit. Category:American businesspeople