KKR aims to raise $1.5 billion in 3-year convertible stock offering

(Reuters) - KKR & Co said connected Tuesday it was looking to rise $1.5 cardinal done an offering of mandatory convertible preferred stocks and volition usage portion of the proceeds to physique up stakes successful companies successful its halfway backstage equity portfolio.

Private equity firms are trying to bolster their reserves to pat an expected surge successful woody volumes pursuing U.S. President Donald Trump's propulsion for little regulation, little firm taxes and broadly pro-business policies.

The preferred banal offered by KKR volition automatically person into a fig of communal shares connected oregon astir March 1, 2028, unless it has been redeemed oregon converted previously.

Shares of the institution fell 4% successful trading earlier the bell, deepening a 10% diminution for 2025 arsenic of the stock's past close. KKR has a marketplace capitalization of $118.1 billion, per LSEG data.

A convertible preferred banal offering allows investors to bargain preferred shares, which often fetch higher dividends than communal shares. Investors besides person the enactment to person their preferred stocks into communal shares.

Morgan Stanley and KKR Capital Markets LLC are acting arsenic the associated book-running managers for the offering.

(Reporting by Pritam Biswas successful Bengaluru; Editing by Devika Syamnath)