Henry Kravis

Henry Kravis
Henry Kravis
Born	Henry Roberts Kravis; January 6, 1944 (age 82); Tulsa, Oklahoma, U.S.
Occupation(s)	Businessman, investor, philanthropist
Years active	Late 1960s–present
Known for	Co-founder of Kohlberg Kravis Roberts (KKR)
Notable work	Leveraged buyout of RJR Nabisco

Henry Roberts Kravis (born January 6, 1944) is a prominent American businessman, investor, and philanthropist. He is recognized as a co-founder of the private equity and investment firm Kohlberg Kravis Roberts.

His notable leveraged buyouts, particularly the acquisition of RJR Nabisco, have attracted criticism from reform advocates focused on private equity oversight. This transaction was famously chronicled in the 1989 book and 1993 film Barbarians at the Gate.

Early life

Kravis was born in Tulsa, Oklahoma to a Jewish family, the son of Bessie (née Roberts) and Raymond F. Kravis, an oil engineer who previously partnered with Joseph P. Kennedy. He attended Eaglebrook School followed by Loomis Chaffee School, where he participated actively in student government. Kravis graduated with a BA in economics from Claremont McKenna College in 1967, where he played varsity golf and engaged in student service groups. He earned his MBA from Columbia Business School in 1969.

Tenure at Bear Stearns

Following various positions within New York City's financial industry, Henry Kravis and his cousin George R. Roberts joined Bear Stearns under the leadership of corporate finance head Jerome Kohlberg, Jr. Both achieved partner status early, at ages 30 and 31 respectively.

During the late 1960s and early 1970s, Kravis, Kohlberg, and Roberts pioneered a series of "bootstrap" acquisitions, completing buyouts such as Stern Metals (1965), Incom (1971), Cobblers Industries (1971), and Boren Clay (1973). While many investments prospered, the $27 million acquisition of Cobblers ended in bankruptcy.

Founding of Kohlberg Kravis Roberts

By 1976, conflicts with Bear Stearns prompted Kravis, Kohlberg, and Roberts to establish Kohlberg Kravis Roberts (KKR). Their proposals for a dedicated fund were rejected by Bear Stearns executive Cy Lewis, who also disapproved of their external ventures.

Kohlberg contributed $100,000 to launch KKR, with Kravis and Roberts each investing $10,000. Initial backers included the Hillman and Griffith families. Following changes to ERISA regulations by 1978, KKR secured its first institutional fund totaling approximately $30 million in commitments.

In 1987, Jerome Kohlberg departed from the firm; thereafter Kravis and Roberts spearheaded landmark transactions including the 1988 leveraged buyout of RJR Nabisco valued at $31.4 billion—the largest buyout recorded at that time. This high-profile deal inspired both the book and film Barbarians at the Gate, featuring Jonathan Pryce as Kravis.

KKR fully exited its RJR Nabisco investment in 1995, incurring an overall loss. The firm acknowledged the risks associated with concentrating capital in a single asset but maintained robust returns through other investments.

KKR's portfolio features significant stakes in health care provider Hospital Corporation of America (HCA), energy company TXU, consumer brands Playtex and Beatrice Foods, supermarket chain Safeway, Toys "R" Us, Borden, First Data, Regal Entertainment Group, along with a notably successful acquisition of Duracell.

On December 24, 2013, KKR finalized its inaugural real estate investment fund by raising $1.2 billion from external investors alongside over $1.5 billion total capital including internal contributions.

In July 2017, Kravis and Roberts revealed succession plans appointing Joseph Y. Bae and Scott C. Nuttall as co-presidents and co-COOs to progressively take over daily management responsibilities. This transition culminated in October 2021 when Kravis and Roberts stepped down as co-CEOs but retained roles as co-executive chairmen.

Personal life

Kravis has entered into matrimony three times. His initial marriage was to Helene Diane "Hedi" Shulman, which ended in divorce; together they had three children: Harrison S. Kravis (1972–1991), Robert R. Kravis (born 1973), and Kimberly Kravis Schulhof (born 1975). After their separation, Hedi remarried James Thompson Ruger and passed away from cancer in 1997. In 1985, Kravis wed New York-based designer Carolyne Roehm, but their marriage concluded in divorce by 1993. Presently, he is married to Marie-Josée Drouin, a Canadian economist and former media figure who sits on several boards such as Memorial Sloan-Kettering Cancer Center, the Robin Hood Foundation, and holds the presidency of the Museum of Modern Art's board.

Kravis's main residence is in New York City, complemented by seasonal properties in Palm Beach, Florida, as well as additional homes located in Southampton, New York; Paris; and Sharon, Connecticut.

Politics

As an advocate for the Republican Party, Kravis has actively supported fundraising efforts for Presidents George H. W. Bush, George W. Bush, and John McCain. In 1997, alongside Lewis M. Eisenberg, he co-established the Republican Leadership Council. Furthermore, in 2017 he donated $1 million toward President Donald Trump's inauguration festivities.

Philanthropy and public positions

The Henry R. Kravis Prize in Nonprofit Leadership, inaugurated in 2006, honors exemplary nonprofit leaders by acknowledging their successes and disseminating effective strategies. This award is jointly presented by Claremont McKenna College (CMC) and Henry and Marie-Josée Kravis. As an alumnus and trustee of CMC, Kravis supports the affiliated Kravis Leadership Institute that promotes leadership research.

Kravis provides funding for the Henry Kravis Leadership Institute at CMC as well as the "Henry Kravis Internships for Teachers of Color" initiative. His philanthropy extends to contributions for facilities at Middlesex School (Kravis House), Eaglebrook School (Kravis Dormitory), Deerfield Academy (Kravis Arena), and The Loomis Chaffee School (Kravis Hall).

A former chairman and benefactor of New York’s public television network, Kravis also serves on the board of the Metropolitan Museum of Art. As a trustee at Mount Sinai Medical Center, he and his wife made a $15 million donation to create the "Center for Cardiovascular Health" and endow a professorship there. Additionally, they have established an endowed chair in human oncology at Memorial Sloan-Kettering Cancer Center.

Kravis co-led the Partnership for New York City with Jerry Speyer—an influential group founded by David Rockefeller—and continues to serve on its board. He also initiated the New York City Investment Fund aimed at fostering job creation and business expansion within the city.

He holds trusteeship at the Council on Foreign Relations, chairs Sponsors for Educational Opportunity, and was a member of The Business Council executive committee between 2011 and 2014, during which he also served as chairman.

At Columbia Business School, Kravis co-chairs the Board of Overseers and committed $100 million toward developing its Manhattanville campus project. He acts as vice-chairman of Rockefeller University, where one of the principal buildings bears his name: Henry R. Kravis Hall.

Awards and distinctions

Recipient of the American Academy of Achievement's Golden Plate Award, 1987
Appointed chairman of Sponsors for Educational Opportunity, 2014
Honored with the Lifetime Achievement Award from Investment Management, 2015
Awarded Columbia Business School's Centennial Award, 2016
Recognized with the Distinguished Leadership Award by the Atlantic Council, 2016
Awardee of the Carnegie Medal of Philanthropy, 2019

External links

Kohlberg Kravis Roberts & Co. (official company site)
KKR Private Equity Pioneers (archived from KKR website)
Profile of Henry Kravis Forbes 2006 ranking
For TXU, One of Wall Street's Legendary Barbarians Returns to the Fray February 2007 New York Times feature
Management: Consultants Set Aside Differences for New York November 2001 New York Times article covering Kravis and the New York City Partnership
Forbes World's Richest People (2005 edition)
Forbes 400 richest Americans (2005)
ATLAS, RIVA D. "What Does an Aging 'Barbarian' Do?." New York Times, August 26, 2001
New York Magazine article highlighting Kravis and Roehm's event at the Metropolitan Museum of Art
Voices of Oklahoma interview. First-person discussion conducted on September 6, 2019