New York — Investment firm KKR will convert to a corporation from a partnership, seeking to capitalise on tax reforms enacted by the Trump administration and win more mutual fund and exchange-traded fund (ETF) investors. The shares surged on Thursday, rising as much as 8.3% in New York, the most since June 2017. The new structure will take effect on July 1, New York-based KKR said in a statement announcing first-quarter earnings on Thursday. The firm expects to pay an annualised dividend of 50 US cents per common share in the third quarter, and immediately increased its share buyback programme to $500m. The Republican tax law slashed the corporate rate to 21% from 35%, spurring private-equity managers to evaluate shifting to a regular corporation, known as a C-corp. The change enables such firms to be included in indices, potentially boosting stock valuations and mutual fund ownership. It also allows for more transparency in financial reporting. "KKR’s conversion from a partnership ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.