Rowing downstream

Leveraged buyout firms are not being reckless. That’s what George Roberts told the Financial Times, and surely the co-founder of Kohlberg Kravis Roberts, the largest practitioner of the art of mega-leverage, should know. After all, KKR is the firm that bought RJR for $31bn in 1988, still the largest buyout ever. Robert’s partner, Henry Kravis, is no less certain. The elder statesman of private equity assures investors that «over a long period» LBOs will outperform. The reason? Shrewd investment ...