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KKR makes 5X return from Intelligence sale

27 Mar 2013

japan people_sqBuyout major KKR has realised a return of five times from its investment in Japanese recruitment specialist Intelligence Holdings, which was sold to peer Temp Holdings yesterday for ¥68bn ($721m).

The equity value of the sale if ¥51bn ($537m) and KKR has made more than five times its money, the Financial Times said.

KKR acquired the company for ¥32.5bn including debt three years ago after outbidding fellow private equity firms Carlyle and MBK.

Under KKR’s ownership, Intelligence has seen its earnings soar 170 per cent as revenues increased 45 per cent.

Intelligence was KKR’s only investment in Japan. The firm has recently unsuccessfully bid for chipmaker Renesas Electronics Corp, which eventually secured a ¥150bn ($1.8bn) government-led bailout instead.

The firm withdrew a tabled offer in mid-October 2012 amid interest from government fund the Innovation Network Corp of Japan, which was backed in the deal by corporates including Toyota Motor Corp and Panasonic.

Only a few weeks ago KKR raided Goldman Sachs and McKinsey & Company to hire two new directors for its operations in Japan, increasing its team in the country to 12.

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