Buyout giant KKR's $26B acquisition of electronic payment processor First Data Corp is not going smoothly, reports the Wall Street Journal. Once enthusiastic investors are shying away from private equity deals as interest rates steepen. "We have enough exposure to KKR already," said one major financier.
Henry Kravis's firm orchestrated five of the eight biggest buyouts of the year. But now in a market saturated with private equity, KKR is looking to partner with hedge funds and less traditional investors--and wrangling with them over fees for the First Data deal. Insiders say the deal isn't in jeopardy, but the tensions are likely to continue.