Early Life
Henry Roberts Kravis was born in Tulsa, Oklahoma, on January 6, 1944. His father, Raymond F. Kravis, was a successful oil engineer and a business partner of Joseph P. Kennedy. Kravis attended Eaglebrook School, Loomis Chaffee School, and later majored in economics at Claremont McKenna College, graduating in 1967. He furthered his education with an MBA from Columbia University in 1969.
Rise to Success
Kravis began his career at Bear Stearns, where he worked under Jerome Kohlberg, Jr. In 1976, Kravis, along with his cousin George R. Roberts and Jerome Kohlberg, Jr., founded Kohlberg Kravis Roberts & Co. (KKR). KKR quickly became a pioneer in leveraged buyouts (LBOs), acquiring and restructuring underperforming companies. The firm's most notable deal was the $25 billion buyout of RJR Nabisco in 1989, which was chronicled in the book "Barbarians at the Gate." KKR's strategy involved using debt to acquire companies, improving their operations, and then selling them for a profit.
Key Business Strategies
KKR's success is rooted in its disciplined approach to identifying and acquiring companies with potential for improvement. The firm focuses on operational enhancements, cost-cutting, and strategic repositioning to increase value. KKR's ability to raise large funds and execute complex transactions has been a key differentiator. The firm also maintains a long-term investment horizon, focusing on sustainable growth rather than short-term gains.
Philanthropy
Henry Kravis and his wife Marie-Josée Drouin are significant philanthropists, supporting numerous causes. They established the Marie-Josée and Henry R. Kravis Center for Molecular Oncology at Memorial Sloan Kettering Cancer Center and donated to the construction of the Kravis Center at Claremont McKenna College. They also support The Robin Hood Foundation and the Museum of Modern Art, where Marie-Josée Kravis is the president of the board of trustees. Their philanthropic efforts extend to education and the arts.