Henry Kravis Net Worth

June 3, 2023
2 mins read

Henry R. Kravis was born on the 6th January 1944, in Tulsa, Oklahoma USA of Jewish ancestry. He is a financier, investor and philanthropist, probably best known for founding the private equity firm Kohlberg Kravis Roberts & Co. Kravis was listed as 107th richest person in USA as well as 278th in the world by Forbes as of the data presented in 2015.

How much is the net worth of Henry Kravis? It has been estimated by authoritative sources that the wealth of Kravis is as much as $5 billion, as of the data presented in the middle of 2016. Leveraged buyouts are the main sources of Henry’s fortune.

Henry Kravis Net Worth $5 Billion

To begin with, he was raised in Tulsa by a successful oil engineer Raymond Kravis and his wife Bessie. Henry was educated at Eaglebrook School and Loomis Chaffee School, in the latter serving as a vice-president of the school. Kravis studied at Claremont McKenna College majoring in Economics, and then he received his Master’s degree graduating from the Columbia University in 1969. He began his career working with several smaller firms based in New York, before he and his cousin George R. Roberts went on to work at the investment bank Bear Stearns, under the guidance of Jerome Kolhberg.

In 1976, the three left Bear Stearns and started the firm Kohlberg Kravis Roberts (KKR). Kravis there developed the concept of leveraged buyout (LBO); together with his partners, he bought companies with potential that were performing poorly. Typically, KKR has invested 10% of the purchase amount from equity; the rest were inlaid by investors in the form of high yield bonds. Once Kravis took over a firm he led a drastic reorganization, in which he substantially cut costs, and excess divisions were sold. The new, more efficient company was subsequently sold at a hefty profit. Kravis’ net worth was rising steadily.

In 1987, Kravis assumed the leadership of KKR Kohlberg; a year later he bought RJR Nabisco for a then record amount of nearly $25 billion. The acquisition of this conglomerate of Nabisco and RJ Reynolds Tobacco Company is described in the book “Barbarians at the Gate”, which was filmed in 1993 by Glenn Jordan, with Jonathan Pryce in the role of Kravis. Among others, repurchase transactions included the Canadian company Masonite International for $1.9 billion in 2005 – in 2009, it was transferred it to its creditors. In 2006, with funds from Goldman Sachs, the handling branch of the Linde Group was purchased. In 2013, Panasonic announced the sale of 80% of its medical division to KKR for $1.67 billion. Today, KKR has invested in more than 65% of the 500 largest companies, and since its creation in 1976, the fund has achieved a 27% average annual rate of return.

Finally, in the personal life of the billionaire, Kravis has married three times. He separated in early 1980s from his first wife Helen Diane Shulman. In 1985, he married the designer Caroline Roehm; this marriage ended in 1993. Kravis married the French – Canadian economist Marie Josée Drouin in 1994.

Concerning his philanthropic efforts, Kravis launched a philanthropic award for leaders in the non- profit sector entitled The Henry R. Kravis Prize in Non-profit Leadership. He also funds the Leadership Studies programs at Claremont McKenna College. Henry Kravis has sponsored the construction of many schools, and serves on the board of many public, medical and educational institutions including Metropolitan Museum of Art, Memorial Sloan-Kettering Cancer Center, Council on Foreign Relations among others.

Daniel Wanburg

As the Managing Editor at Net Worth Post, I lead a talented team in delivering compelling content on the lives and achievements of influential figures. With a keen eye for detail and a passion for storytelling, I oversee the production of insightful biographies that resonate with our audience. My role involves not only managing the editorial process but also conducting research, crafting engaging narratives, and ensuring the accuracy and quality of our publications.

At NetWorthPost, we strive to provide our readers with in-depth profiles that offer valuable insights into the worlds of business, entertainment, and beyond. Through meticulous research and captivating storytelling, we bring to light the remarkable journeys and successes of individuals who inspire and captivate us.

Leave a Reply

Your email address will not be published.

Don't Miss