KKR Financial Holdings LLC has agreed to sell seven of its private equity investments to two institutional investors.
In connection with the sales, the Company will receive net cash proceeds of approximately $191 million and will record a net gain on the sales of approximately $51 million.
Prior to the sales, the Company had received aggregate cash distributions totaling approximately $24 million in connection with its ownership of three of the private equity investments. In each case, the cash distribution received was applied to reduce the cost basis of the private equity investment.
The Company estimates that it will earn a net internal rate of return of approximately 19.3 percent on the sales. The sale of one of the private equity investments closed on September 6, 2007 and the sale of the other six private equity investments is expected to close during the fourth quarter of 2007.