June 8, 2009

Fidelity and KKR Team Up

Deal would give Fidelity customers exclusive access to IPOs and other offerings

Fidelity Investments and Kohlberg Kravis Roberts & Co. (KKR) announced an agreement that enables Fidelity's retail and institutional brokerage customers the opportunity to participate in initial public offerings (IPOs) and follow-on offerings of KKR companies, while providing KKR's capital markets business with a new retail distribution channel.

The agreement will give Fidelity exclusive access to retail securities allocated to KKR in all U.S. public offerings in which KKR participates as an underwriter, including IPOs and follow-on offerings. Those retail securities will be made available to Fidelity's retail brokerage customers as well as to accounts managed by Fidelity's RIA, correspondent broker-dealer and other institutional clients. KKR will act as the underwriter of all retail securities that are distributed by Fidelity under the arrangement.

"While it's no secret that the IPO market has slowed over the last couple of years, we are beginning to see signs that it may be picking up momentum," said Mark Haggerty, president of Fidelity Capital Markets, the institutional trading division of Fidelity Investments, in a statement announcing the new partnership.

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