Engaging proactively with our key stakeholders helps ensure that our approach to investing is informed by a broad range of insights and experiences, and that we are setting shared priorities, adjusting our approach, and learning from our mistakes. It also allows us to communicate our efforts, thereby demonstrating results and progress over time to our stakeholders. For these reasons, our focus on stakeholder engagement has been a central part of our philosophy towards private equity from the beginning, and is a capability that we constantly strive to improve.
Our partners and stakeholders include a wide range of groups and individuals, such as the management teams and employees of the private equity companies in which we invest, the individuals and institutions that invest alongside us, the communities affected by our investments, nongovernmental organizations (NGOs) including unions, and our own employees.
It is also important to us that we build positive relationships with groups that represent the communities and the environments we affect, as well as with the governments and regulators of the countries in which we operate. We believe that protecting and enhancing these relationships is critical to smart investing and creating long-term, sustainable value.
How KKR Engages with Stakeholders
Fund Investment Partners
Those that have made or are considering making an investment with KKR
- Ongoing efforts to increase transparency and engagement, such as through our endorsement of the Institutional Limited Partners Association principles
- ESG round tables with KKR private equity portfolio companies and ESG-focused presentations integrated in regular communications
Persons directly employed by KKR
- Semiannual review and development discussions based on 360-degree feedback
- Ongoing leadership development and other critical skills-based training programs
- Communication of our ESG efforts to employees through targeted internal communications and regular updates from KKR leadership
- Specific ESG training programs for investment professionals and KKR Capstone executives
Governments and regulators
Local, regional, and national governments, regulators, and supervisors
- Dialogue and engagement with regulatory authorities and policymakers by KKR and portfolio companies regarding societal needs, the role of private capital, and industry trends
- Investment partnerships with local and state government pension funds
- Advocate for the importance of defined benefit plans as an option for public sector workers
Private Equity Portfolio company employees
and Prospective Employees
Employees of private equity portfolio companies around the world
- Pre-investment assessments of relationship between workers and management, including, where relevant, organized labor and work councils
- Meetings and webinars with functional leads about emerging issues and proven practices on issues of interest
- Ongoing, deep engagement through the boards of directors and operational initiatives throughout the portfolio companies
Those representing the concerns and expectations of the communities in which KKR and the private equity portfolio companies operate
- Partnerships with external thought leaders, such as NGOs
- Consultations with experts about specific ESG issues in the private equity pre-investment and portfolio management phases
- ESG round tables with KKR private equity portfolio companies
- Ongoing outreach and discussions with key media outlets and journalists
ESG Round Tables
In 2010, we began our ESG round table series, an effort designed to bring together the entire private equity investment chain – from limited partner to general partner to portfolio company – to share best practices with respect to real-life ESG case studies, challenges, and opportunities. In 2011 and 2012, we expanded these events to include practical working sessions with portfolio company representatives and outside experts. We also include time for collaboration and discussion between the KKR team, portfolio company management, and investment partners. Our round tables have set the foundation for many successful partnerships and we will continue to convene these events with our portfolio companies and the investor community in the future.