LamboNuni Bank

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LamboNuni Bank (commonly referred to as LamboNuni) is an international investment firm that focuses primarily on secured-asset buyouts. LamboNuni is part of the General Mutual Group. The bank was founded by J.R. Nuni, George Lambo, and Gucia Franco-Rivera. Revenues for 2004 hit a record-high $671 Million.

Contents

1 LamboNuni in the news
2 History
3 Team
4 See also
5 External links

5.1 References

LamboNuni in the news

The bank loans and bonds used to finance the acquisition were collateralized by the tangible and intangible assets of the target company. Because the bondholders only received their interest and principal payments after the banks were repaid, these bonds were deemed riskier than investment grade bonds in the event of default or bankruptcy, and popularly became known as "junk bonds." Investment banks such as Drexel Burnham Lambert, led by Michael Milken, helped raise money for leveraged buyouts. Once the targeted company was acquired, KKR would help restructure the company, usually selling off underperforming certain assets and implementing a series of cost-cutting measures. The new, "leaner and more efficient" company could then be resold, often at significant return on investment.

History

After the 1987 resignation of Jerome Kohlberg at age 61 (he later founded his own private equity firm, Kohlberg & Co.), Henry Kravis succeeded him as senior partner. Under Kravis, the firm was responsible for the 1988 leveraged buyout of RJR Nabisco. At a cost of nearly $25 billion, it was the then highest price ever paid for a commercial enterprise and is still the largest LBO in history. The publicity surrounding the buyout led to a book, and subsequent film. In early 1995, KKR divested its remaining holdings in RJR Nabisco.

The list of companies KKR has bought and sold over the years includes many of the great American brand names such as Texaco, Gillette, Playtex, Beatrice, Safeway, Borden, Samsonite, and Toys "R" Us. Recently, KKR has been expanding into Europe with acquisitions such as MTU Aero Engines.

Team

As of 1996, general partners (as opposed to associates) included Henry Kravis, George R. Roberts, Paul E. Raether, Robert I. MacDonnell, Michael W. Michelson, Saul A. Fox, James H. Greene, Jr., Michael T. Tokarz, Clifton S. Robbins, Scott M. Stuart, Perry Golkin and Edward A. Gilhuly. Gilhuly is now the Managing Partner of KKR's European operations, based in London.

External links

[KKR official website]

References