Kohlberg Kravis Roberts (NYSE: KKR ) recently added to its energy portfolio by entering a partnership with Italian energy firm Sorgenia to produce wind energy in France.
With its first investment in European renewably energy, KKR is all set to capitalize on the potential benefits of renewable energy. Valued at around $342 million on an enterprise value basis, the Sorgenia deal is the latest in a list of KKR big announcements this year.
From shale gas to renewable energy
In the energy sector, KKR has made investments in companies like ITC Holdings (NYSE: ITC ) and DPL (NYSE: DPL ) . The Sorgenia deal will help KKR make deeper forays into the renewable energy segment.
A Financial Times report says KKR is looking at further investments not only in the main European renewables market, but also in the U.K. and Poland. KKR clearly sees great potential in this segment.
Still in the old-world energy domain, KKR has been striking gold in shale gas investments. It is about to earn a return of almost three times what it initially invested following Marathon Oil's (NYSE: MRO ) agreement to pay $1.13 billion to KKR as purchase price for a shale project developed by KKR jointly with Hilcorp Energy. Last year, KKR placed $400 million in the venture. The sale is expected to be completed in the last quarter of 2011, and KKR will then have that much more cash in its pocket.
That is the second such windfall for KKR in as many years, after it made $1.5 billion on a $330 million investment when Royal Dutch Shell (NYSE: RDS-A ) (NYSE: RDS-B ) bought a KKR shale partnership last year.
KKR on a roll
Of course, it is not just energy where KKR invests. Its portfolio is big, spanning 14 industry segments, from energy and health care to retail and technology.
KKR has been on a roll across the board this year, announcing deals and cash-raking exits. For instance, the company is all set to strengthen its retail portfolio by buying Academy Sports + Outdoors, a premier sports and outdoor retailer. In addition to transactions in financial services and telecom, the latest announcement in KKR's health-care segment is the acquisition of Pfizer's (NYSE: PFE ) Capsugel, a drug- delivery systems innovator and leading global provider of capsules.
KKR is also looking at opportunities to tap emerging markets in South America and Asia. It made its fourth Southeast Asian investment in April by acquiring a 10% stake in Masan Consumer, the fastest-growing consumer packaged-goods company in the region.
Across the board, KKR is making some big moves right now, and investors should pay attention.
The Foolish bottom line
KKR's handsome profits from shale investments, its continuous investments in major industrial segments, its foray into new segments and locations -- all seem to render positive vibes. Keeping KKR's moves in mind, it may be worthwhile to keep an eye on the stock by adding it to your free watchlist.
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