Global rating agency Kroll Bond Rating Agency (KBRA) has entered a deal with growth-oriented private equity firm Parthenon Capital Partners who will acquire a majority stake in the company for US$900 million.
KBRA is the largest global credit rating agency founded in the wake of the global financial crisis which has recently been involved in data centre operator Cologix’s US$1.1 billion Asset-Backed Security (ABS) and assigned preliminary ratings to DataBank.
KBRA CEO, President, and Co-Founder Jim Nadler, said: “When KBRA was founded, our mission was to provide the market with timely, valuable, and transparent ratings and research.
“Over the past 11 years, KBRA has set the standard for engagement with investors, which has led to our leadership position across many markets. This investor engagement and outreach has also led to KBRA’s acceptance and reliance among issuers, policymakers, and key opinion leaders.
“As we continue to expand both domestically and abroad, we are excited to partner with Parthenon to accelerate our future growth.”
KBRA has more than 400 employees across its five offices in the U.S. and Europe.
The company has issued over 51,000 ratings with nearly $3 trillion in rated issuance since its inception in 2010. KBRA provides industry-leading ratings and research across all sectors from its Corporate, Financial, and Government (CFG) and Structured Finance units.
Zach Sadek, a partner at Parthenon Capital, said: “KBRA has quickly become a leading voice among the major global rating agencies. The market clearly relies on KBRA for holistic, transparent and thoughtful credit ratings and research.”
Parthenon Capital’s financial advisor was Newbold Partners LLC and its legal advisor was Kirkland & Ellis LLP. KBRA received legal advice from Gunderson Dettmer LLP and Shearman & Sterling LLP.