Scratching backs

Citigroup used to help Kohlberg Kravis Roberts pull together huge buyouts. Now the bank is indirectly helping the private equity shop take a chunky stake in Legg Mason. Henry Kravis’ firm is investing $1.25bn in the asset management company. Legg will use some of that to buy back preferred stock owned by Citi. It’s ironic that the giant US bank’s need for cash may have facilitated the deal. But in any event, the investment ticks the important boxes for KKR. KKR’s investment in its less-fashiona...