George R. Roberts
Encyclopedia
George R. Roberts is an American
financier and was one of the three original partners of Kohlberg Kravis Roberts & Co.
(KKR), which he co-founded alongside Jerome Kohlberg
and first cousin Henry Kravis
in 1976.
and attended Claremont McKenna College
, graduating in 1966. He then attended the University of California, Hastings College of the Law, graduating in 1969. He graduated from Culver Military Academy in '62 and received that institution's "Man of the Year" Award in 1998.
Working for Bear Stearns
in the late 1960s and early 1970s, Roberts, alongside Kohlberg and Kravis began a series of what they described as "bootstrap" investments. Their acquisition of Orkin Exterminating Company
in 1964 is among the first significant leveraged buyout
transactions. In the following years the three Bear Stearns
bankers would complete a series of buyouts including Stern Metals (1965), Incom (a division of Rockwood International, 1971), Cobblers Industries (1971), and Boren Clay (1973) as well as Thompson Wire, Eagle Motors and Barrows through their investment in Stern Metals. Although they had a number of highly successful investments, the $27 million investment in Cobblers ended in bankruptcy.
By 1976, tensions had built up between Bear Stearns
and the trio of Kohlberg, Kravis and Roberts leading to their departure and the formation of Kohlberg Kravis Roberts in that year. Most notably, Bear Stearns executive Cy Lewis had rejected repeated proposals to form a dedicated investment fund within Bear Stearns and Lewis took exception to the amount of time spent on outside activities. Early investors in KKR included the Hillman Family By 1978, with the revision of the ERISA regulations, the nascent KKR was successful in raising its first institutional fund with approximately $30 million of investor commitments.
He has an estimated net worth of around $5.5 billion . Much of this wealth came through his position at Kohlberg Kravis Roberts. In 1989 Roberts and Kravis led one of the most famous leveraged buyout
s (LBOs) in the takeover of RJR Nabisco
. Roberts' involvement in the RJR Nabisco
deal was profiled prominently in the book and movie, Barbarians at the Gate. Roberts was featured on the cover of FORTUNE Magazine
at the height of the buyout boom of the 1980s alongside his cousin and partner, Henry Kravis
.
He once commented to The Wall Street Journal
on May 30, 1997 on why he loves golf: "Golf is the best game ever invented by man. It treats everyone as an equal, and whatever you do well or poorly you've done yourself." He had three children with his late wife, the former Leanne Bovet, who died in 2003. On May 22, 2010, he married Goldman Sachs
partner Linnea Conrad.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
financier and was one of the three original partners of Kohlberg Kravis Roberts & Co.
Kohlberg Kravis Roberts & Co.
KKR & Co. L.P. is an American-based global private equity firm, specializing in leveraged buyouts, based in New York. The firm sponsors and manages private equity investment funds. Since its inception, the firm has completed over $400 billion of private equity transactions and was a pioneer in...
(KKR), which he co-founded alongside Jerome Kohlberg
Jerome Kohlberg, Jr.
Jerome Kohlberg, Jr. is an American businessman and early pioneer in the private equity and leveraged buyout industries founding private equity firm Kohlberg Kravis Roberts & Co. and later Kohlberg & Company....
and first cousin Henry Kravis
Henry Kravis
Henry R. Kravis is an American businessman and private equity investor. He is the co-founder of Kohlberg Kravis Roberts & Co., a private equity firm with over $62 billion in assets as of 2011. He has an estimated net worth of $3.7 billion as of September 2011, ranked by Forbes as the 88th richest...
in 1976.
Biography
George Roberts was born in Houston, TexasHouston, Texas
Houston is the fourth-largest city in the United States, and the largest city in the state of Texas. According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of . Houston is the seat of Harris County and the economic center of , which is the ...
and attended Claremont McKenna College
Claremont McKenna College
Claremont McKenna College is a private, coeducational liberal arts college and a member of the Claremont Colleges located in Claremont, California. The campus is located east of Downtown Los Angeles...
, graduating in 1966. He then attended the University of California, Hastings College of the Law, graduating in 1969. He graduated from Culver Military Academy in '62 and received that institution's "Man of the Year" Award in 1998.
Working for Bear Stearns
Bear Stearns
The Bear Stearns Companies, Inc. based in New York City, was a global investment bank and securities trading and brokerage, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession...
in the late 1960s and early 1970s, Roberts, alongside Kohlberg and Kravis began a series of what they described as "bootstrap" investments. Their acquisition of Orkin Exterminating Company
Orkin
Orkin is a pest-control company that is a wholly owned subsidiary of Rollins Inc.-The Orkin Uniform:The most recognized Orkin uniform consists of a white collared shirt with the Orkin logo and red epaulets and pressed khaki pants. The uniform varies depending on an employee’s job function for...
in 1964 is among the first significant leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
transactions. In the following years the three Bear Stearns
Bear Stearns
The Bear Stearns Companies, Inc. based in New York City, was a global investment bank and securities trading and brokerage, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession...
bankers would complete a series of buyouts including Stern Metals (1965), Incom (a division of Rockwood International, 1971), Cobblers Industries (1971), and Boren Clay (1973) as well as Thompson Wire, Eagle Motors and Barrows through their investment in Stern Metals. Although they had a number of highly successful investments, the $27 million investment in Cobblers ended in bankruptcy.
By 1976, tensions had built up between Bear Stearns
Bear Stearns
The Bear Stearns Companies, Inc. based in New York City, was a global investment bank and securities trading and brokerage, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession...
and the trio of Kohlberg, Kravis and Roberts leading to their departure and the formation of Kohlberg Kravis Roberts in that year. Most notably, Bear Stearns executive Cy Lewis had rejected repeated proposals to form a dedicated investment fund within Bear Stearns and Lewis took exception to the amount of time spent on outside activities. Early investors in KKR included the Hillman Family By 1978, with the revision of the ERISA regulations, the nascent KKR was successful in raising its first institutional fund with approximately $30 million of investor commitments.
He has an estimated net worth of around $5.5 billion . Much of this wealth came through his position at Kohlberg Kravis Roberts. In 1989 Roberts and Kravis led one of the most famous leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
s (LBOs) in the takeover of RJR Nabisco
RJR Nabisco
RJR Nabisco, Inc., was an American conglomerate formed in 1985 by the merger of Nabisco Brands and R.J. Reynolds Tobacco Company. RJR Nabisco was purchased in 1988 by Kohlberg Kravis Roberts & Co...
. Roberts' involvement in the RJR Nabisco
RJR Nabisco
RJR Nabisco, Inc., was an American conglomerate formed in 1985 by the merger of Nabisco Brands and R.J. Reynolds Tobacco Company. RJR Nabisco was purchased in 1988 by Kohlberg Kravis Roberts & Co...
deal was profiled prominently in the book and movie, Barbarians at the Gate. Roberts was featured on the cover of FORTUNE Magazine
Fortune (magazine)
Fortune is a global business magazine published by Time Inc. Founded by Henry Luce in 1930, the publishing business, consisting of Time, Life, Fortune, and Sports Illustrated, grew to become Time Warner. In turn, AOL grew as it acquired Time Warner in 2000 when Time Warner was the world's largest...
at the height of the buyout boom of the 1980s alongside his cousin and partner, Henry Kravis
Henry Kravis
Henry R. Kravis is an American businessman and private equity investor. He is the co-founder of Kohlberg Kravis Roberts & Co., a private equity firm with over $62 billion in assets as of 2011. He has an estimated net worth of $3.7 billion as of September 2011, ranked by Forbes as the 88th richest...
.
He once commented to The Wall Street Journal
The Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....
on May 30, 1997 on why he loves golf: "Golf is the best game ever invented by man. It treats everyone as an equal, and whatever you do well or poorly you've done yourself." He had three children with his late wife, the former Leanne Bovet, who died in 2003. On May 22, 2010, he married Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
partner Linnea Conrad.