Interviewees: George Roberts and Henry Kravis
Interviewer: Henny Sender
Date: June 16, 2009

Private equity firm KKR founders George Roberts and Henry Kravis were interviewed in an exclusive web interview for Financial Times. In this interview, they discussed the history of KKR, the role of private equity firms in the current economic crisis, and the risks of a company going public.

The son of an oil engineer, Henry Kravis was born in Tulsa Oklahoma. Henry Kravis graduated from Claremont College in California, majoring in economics. He went on to earn his MBA from Columbia University and got a job with Bear Stearns, along with his cousin, George R. Roberts. Both men worked under Jerome Kohlberg, Jr., the corporate finance manager.

Jerome Kohlberg taught Henry Kravis and George Roberts the technique of “bootstrap acquisition.” He found small companies or undervalued divisions within larger companies, and would help the management of these companies buy themselves out. In 1976, when Bear Stearns would not fund these kinds of investments, Jerome Kohlberg resigned and took Henry Kravis and George Roberts with him. The three men formed KKR.

Since its inception, KKR has spent more than $73 billion, acquiring more than 45 companies. In the same year as the Nabisco buyout, KKR successfully prevented a hostile takeover of Texaco, acquired the Stop and Shop grocery chain, and bought Duracell from Kraft Foods.

Henry Kravis is currently married to Canadian economist Marie-Josée Kravis nee Drouin, and former columnist and TV personality in Canada. Henry Kravis serves as a director or trustee of the Partnership for New York City, Mount Sinai Hospital, Public Television Channel 13/ WNET New York, Columbia Graduate School of Business (where he is chairman of the board), Rockefeller University, and Claremont McKenna College. Henry Kravis is also the co-chairman of the New York City Investment Fund, a non-profit organization he founded to create jobs and help small businesses in New York City. At Claremont McKenna College, Henry Kravis launched the the Kravis Leadership Institute and established the Henry Kravis Prize in Leadership, an award to honor leadership, creativity, and sustainability in nonprofit organizations.

George Roberts was born in Houston. Like his cousin Henry Kravis, George Roberts graduated from Claremont McKenna College. He then graduated from the Hastings College of Law at the University of California. George Roberts was married and has three children with his late wife.

George Roberts serves as a director or trustee of the San Francisco Symphony, Claremont McKenna College, and Culver Military Institute. He is also a member of the Stanford Graduate School of Business Advisory Council. George Roberts is also the founder and Chairman of the board of directors of REDF (originally called the Roberts Enterprise Development Fund), a San Francisco non-profit organization. REDF employs venture philanthropy methodologies to support job training and create job opportunities.