Undeterred by the possibility of potentially devastatingly tax-law changes, Kohlberg Kravis Roberts firmed up its IPO plans today, filing SEC documents that value the issue at up to $1.25 billion. The private (for now) equity firm said it will list as a partnership, like archrival Blackstone, which went public last month to the tune of more than $4 billion.
Congress has recently shown a keen interest in the fact that hedge funds and private equity firms pay taxes at the capital-gains rate, 15%, rather than as much as 35%, the rate that applies to income. But that uncertainty isn't expected to scare off investors. Says one analyst: "Even with everything else going on, KKR is a fundamentally good business."