This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

KKR 'Obvious Choice' Among Buyout Stocks

NEW YORK (TheStreet) KKR & Co. (KKR)shares are the clear standout among those of publicly traded private equity companies, according to a report published late Thursday by Oppenheimer analyst Chris Kotowski.

Kotowski maintained his "outperform" rating on KKR and "perform" ratings on The Blackstone Group (BX) and Fortress Investment Group (FIG) . Also on Thursday, he initiated coverage on Carlyle Group (CG) and Apollo Global Management (APO), giving both stocks a "perform" rating. While he argues it is "still a little too early to be broadly bullish on the group," Kotowski sees "great potential over a three- to five-year term" for the sector.

KKR is the "obvious choice on a number of fronts," Kotowski argues. Particularly attractive, he states is that, unlike the other buyout firms, KKR has no return hurdles it must clear before generating performance-related fees.

Kotowski's report made no mention of an investigation by New York Attorney General Eric Schneiderman accusing several private equity firms of tax evasion, including Apollo, KKR, Carlyle and Blackstone. Those firms are also named in a private antitrust lawsuit filed in a Federal District Court in Boston in 2007 that continues to generate headlines.

Publicly-traded private equity firms' shares are different from those of many other public companies. Investors in the companies, for example, cannot throw out management if they are unhappy with performance.

-- Written by Dan Freed in New York.

Stock quotes in this article: KKR, CG, APO, FIG, BX 
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs