KKR/Sun Micro: Sun Micro’s cloud cover

KKR doesn’t need an IPO to understand firsthand the frustrations of being a public investor. In January, the firm invested $700m into Sun Microsystems by acquiring securities that can be converted into the computer manufacturer’s stock. But the deal first lauded as a winner has gone pear-shaped. The buyout firm set the terms of its investment just days before Sun Micro released bumper fiscal second-quarter results. These combined with news of KKR’s investment to send shares surging close to the...