KKR to Focus on Financial Services

Henry Kravis says there are opportunities in the financial services market for KKR.
By Maria Woehr ,

NEW YORK(

TheStreet

) --

KKR

's

(KKR) - Get Report

Henry Kravis has $13 billion of dry powder to invest and he means to make some moves into the financial sector in 2011.

"During the later part of 2007 and 2008 we used to have a joke: Every Friday we would get a 9-1-1 call from a financial institution. We turned everyone of those down," Kravis said at the

Goldman Sachs

(GS) - Get Report

US Financial Services Conference 2010 Wednesday. "Today we look at it and say there is the possibility of bank consolidation or regional bank consolidation or in Europe."

Kravis added that the firm is in conversations with several financial institutions that need capital.

To fund these investments Kravis said the PE firm will do its next round of fundraising in 2011 and should scoop up capital from diversifying business.

Kravis also remarked that Goldman's loss of its proprietary trading group due to the Volcker Rule is the KKR's gain.

"We brought over about 10 people from Goldman to KKR and they will run our long short business and they are a very good fit for what we are doing over here at the firm," Kravis said. "This helps build out the equity business for us."

--Written by Maria Woehr in New York.

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