Henry Kravis: How the Corporate Titan Rocked Wall Street

Nov. 12 (Bloomberg) -- His name is synonymous with 'Corporate Titan.' As co-founder of KKR, Henry Kravis re-wrote the rules of leveraged buyouts; he and his cousin George Roberts now rule over an empire that dwarfs some of the world's mightiest public corporations. "Bloomberg Game Changers" follows Kravis' rise from his early days in 'bootstrap' acquisitions, through his role in the 1988 landmark LBO of RJR-Nabisco, to KKR's IPO on the New York Stock Exchange. (Source: Bloomberg)
-- Subscribe to Bloomberg on KZbin: / bloomberg
Bloomberg Television offers extensive coverage and analysis of international business news and stories of global importance. It is available in more than 310 million households worldwide and reaches the most affluent and influential viewers in terms of household income, asset value and education levels. With production hubs in London, New York and Hong Kong, the network provides 24-hour continuous coverage of the people, companies and ideas that move the markets.

[@vivekkaushik9508]

Here after watching the film Barbarians at the Gate. Impeccable insights into how wallstreet and high finance works. No drama. No cliche. Pure business.

[@phenomenonfour258]

7:09 "armed only with an idea... and $400k for overhead costs"

[@mdkhaledhasan8059]

"...from backers"

[@gilgamesh3328]

'Barbarians At The Gate' the story of KKR's fight to control RJR Nabisco, is right up there with Liar's Poker as a business book classic.

[@YOBRAX]

also you should try Den of Thieves about wall street greed

[@methodicalmysticbutterflyi2669]

I loved that movie!

[@DW-wf1ti]

Yes, this book is fantastic. Def up there with Liar’s Poker, Big Short, and When Genius Failed. So much to learn from all these books

[@gritequity2132]

The LBO king himself.. Bloomberg did a great job here

[@glascoebowie9359]

This is how you get rich on wallstreet and don't have to worry about losing money Exon BP AP and other oil companies or resources that come from the land.

[@moncorp1]

Just glossed over the fact that the debt from the lbo crushed Houdaille. KKR still profited through their fees. Didn't matter to KKR if the deal was successful or not. They make a nice chunk up front.

[@sutats]

Came here for Lenny Kravitz. Was not disappointed.

[@habibbialikafe339]

in the book it says that he actually had a pretty bad record at bear sterns

[@cinemaparadiso5402]

Nothing but a selfish heartless SHARK .. people like him are bad for society!

[@dovteitlebaum158]

Wow I’ve never known trump to be in a Bloomberg special

[@TheDavidlloydjones]

When the shot was taken Trump either wanted money out of Kravis or had recently gotten money out of Kravis. Very recently: Trump's gratitude has a half-life of any other artificially-created element.

[@dovteitlebaum158]

@@TheDavidlloydjones maybe. Trump likes to associate himself with powerful, rich, and famous people.

[@rockyBalboa6699]

Corporate Raiders should not be mistaken for Noble Knights! They are just some Greedy bunch of people!

[@Ckom-Tunes]

I know literally dozens of people, across several companies, who lost their jobs directly because of this guy’s work. He’s a walking definition of what’s wrong with American business (check out the friends he has…) The film ‘Barbarians at the Gate’ was required viewing as part of an ethics course I took at university. (Spoiler: He’s not the hero.)

[@pfsalinger7195]

Leverage is a dangerous game

[@peterantonov5568]

KEEP MAKING THESE FOR GOD'S SAKE .. you've got plenty of Billionaires to choose from still! Michael Bloomberg himself would love a documentary about him I'm sure. Surprise the man!

[@fxlts]

Nobody worried about that liberal fuck

[@alwaysincentivestrumpethic6689]

@@fxlts -You wear you're political ideology on your sleeve ??? Sad !!! Blomberg ran as a Republican,independent & Democrat so calling him a liberal hack is not accurate don't you think ??? Blomberg has donated more money to elect Republicans than democrats so ???

[@thomasjenkins2430]

While this is very useful information, I seem to have drifted from interests in stocks and wall street investment and delved into the cryptocurrency world. It was very rough in the beginning as yo had to be your own analyst broker and trader at the same time. Leading me to lose lots of investment until my research lead me to "Lance Bergel aka Cryptomint3r". I experience miracle after I meet him and followed his recommendations. My overall portfolio at some point went up 1250%. I invested $850 into most of Lance Bergel's recommendations and slept well at night. My biggest gain so far was when I invested around $12K into Lance recommendations and as of today they're worth over $239K. Lance, you have taken a was my financial worries over our situation and I am really really grateful. My daughter began her own asymmetrical investing with Lance Bergel and I suspect it will change her life for the better. I just cant wait. If you want to contact Lance Bergel, write to Cryptomint3r@gmailcom... thanks to Lance

[@cinemaparadiso5402]

These are NOT documentaries .. nothing but a misleading propaganda + @ss kissing films. .. with all respect ❤️

[@JeffersonMartinSynfluent]

The video somewhat glosses over the years in the early 'nineties when KKR was feeling the downdraft of irrational exuberance given in the RJR Nabisco projections from 1988. I doubt that I would want to buy this guy a beer were I to run into him somewhere.

[@chiragpatel849]

+Sepulcher No it was successful.

[@charlesvanderhoog7056]

KKR won RJR Nabisco with their $109 a share bid over a higher $112 a share bid because KKR could guarantee the $109 in cash while the $112 bid depended on stock price of underlying assets.

[@vedantkale1163]

I prefer the style of warren buffett over Henry Kravis, they do the same thing but just with in a different way, Buffett buys companies with cash and a little bit of debt, and never stripes the companies (except berkshire) whereas this guy takes huge about of debt to buy companies which is very very risky, that is the reason why his biggest deal became such a failure, Buffett creates and maintains jobs, Kravis destroys it. So to sum it up Buffett can be excellent host and Kravis a excellent parasite. And to see the difference one can look at their company's and personal net worth.

[@scotta8612]

You don't think it had more to do with the fact that cigarettes became known to be absolutely HORRIBLE for you and people stopped smoking? lol Please... You have no clue what you're talking about.

[@alleon5458]

pls educate yourself in finance.

[@samchhin8]

Vedant kale That's what private equity firm work. Use debt to buy asset.

[@SuperAdobeFlash]

Plus there was a "Giant Ego & Prestige" issue

[@regismubayiwa6457]

Guys like Kravis, Roberts and Schwartman make companies more efficient and hence competitive. If it means pple lose jobs so be it. It's a natural evolution of capitalism. You are basically saying the digital age was bad coz the postman got laid off

[@georgeprice5922]

If he looks like a criminal sounds like a criminal walks like a criminal He probably has a really cool house

[@rajasekhardarbha4728]

Prison?

[@AdrianDucao]

Lol you're too bitter, thats the reason why you cant succees

[@cinemaparadiso5402]

It's anti-semitic to criticize such business culture .. EVEN if they were unethical or even criminal.

[@MilciadesAndrion]

It's an extraordinary financial history about innovation. Kravis is a corporate titan.

[@maasicas]

" innovation " . Coming up with new kind of scam is innovative i guess , sure.

[@all_the_bad_news5614]

Former chairman of Bear Sterns? I would not advertise that

[@cj.lewis5]

TLC, Inc. - Reginald F. Lewis did the deal on Beatrice Foods. He was the point man...There’s an entire book written about it. Huge blunder on Bloomberg’s part for failing to mention his name.

[@mrg3284]

Your absolutely correct, Harvard Law named a building after him in regards. What a complete oversight!!

[@marketwizard1977]

Wrong....Reginald Lewis did a leveraged buyout of Beatrice after this happened and renamed it TLC Beatrice (The Lewis Company).

[@johnbenjamin2703]

It was Michael Milken who brought In Reginald Lewis RIP on the Beatrice Deal. Reggie put up $50 MIL MICHAEL MILKEN COMPANY RAISED $935,000,000.00 JUNK BONDS THEN LATER WENT TO JAIL...OUT OF THE SECURITIES BUSINESS.. jb.ok

[@reftalent]

2021 i still enjoy this documentary

[@jaihananisperceptions2716]

He Looks Like Joaquin Pheonix

[@karykares]

Jai Hanani's perceptions Lol I see it, from the eyebrows down.

[@reggie93441]

Such a masterful piece by Bloomberg

[@kostantinosdemopoulos8907]

Vultures....who leave broken human lives, in their wake.....and couldn't care less....

[@BigBadJerryRogers]

And the poor and middle class who vote Republican want them to have every break possible.

[@aaronconsultant]

They reorganize old, stale, failing companies. If they didn't do it, the Chinese/Japanese/Indian competition sure as hell would.

[@HT.100]

Basically a heartless corporate raider

[@TaipanJobLim]

How many LBO company employees has he sacked all throughout the years he ruled his game, and the countless families he made to lose their jobs along his path to financial gains, so many that his son was the ultimate price for his greed and unheartlessness towards the small employees he has to let go

[@balangas3910]

The trimming done by PE firms is often something that was long due in the company and when the PE firm does it all of a sudden it's a bit shocking.

[@jdlc903]

Partner of bear sterns at 30?

[@enjoipandaskater]

I'm pretty sure the clip they used in 3:14 is of City College in Harlem not Columbia University.

[@sed0692]

Navindra Kewal yes true. The stairs

[@michaelxpettis]

No it's not. It's the Columbia campus on 116th Street.

[@francisfoong63]

3:11 is Columbia but 3:14 is not Columbia to the best of my recollection.

[@valentinec1245]

Amazing documentary, Henry is a financial genius, thanks for sharing

[@kellydg471]

Nobody mentions that KKR lost $775 million on the RJR Nabisco LBO and hasn't done a major deal since

[@johndingleberry6856]

Define major? You must also take into account the competitive landscape changing since then. A lot more PE firms and a lot more companies going public asap.

[@kellydg471]

@@johndingleberry6856 "major" could be defined as a transaction that lost KKR a quarter of a billion. None of Henry Travis' smoke and mirrors can make that hard truth go away. The only change in the competitve landscape is that nobody wants to finance KKR.

[@vanaik]

How can his eyes look super focused and cold on literally any photo?

[@BrandonTharphorrortownusa]

Evilness always looks cold

[@Kenmutuma150]

this guy is a genius

[@zes3813]

wrg

[@hidekitojo902]

no kidding man.

[@jackr332]

Henry Kravis is a LEGEND!

[@tarasivashchuk1973]

I can’t believe people actually look up to people like this. I would literally be disgusted with myself if I became anything like this man

[@maximilliandirnfeld2442]

stfu

[@thewizard5339]

A genius with wealth? Yeah go be a peasant somewhere else

[@chiragpatel849]

with that mindset you won't be anything

[@jkardez4794]

Just a coldblooded shark- unfortunately in the capitalistic USA he is considered a legend because they glorify mammon .

[@BrandonTharphorrortownusa]

Yup they worship crooks like Kravis till he cost them money.

[@jamesscott8533]

It’s not that brilliant to borrow huge amounts of money to buy a company and then drain it of all its cash and employees.

[@9SmartSand6]

Particularly to the employees who lose their jobs and pension funds.

[@vincentconti3633]

It's more akin to street smart! I made a living doing basically the same thing with real estate. Look for value that others don't see! I borrowed money to live! It's one of the great things about the US! I am of course a pauper compared to people like this. For instance...I borrowed money to buy rural land. We would log it! Yah I know I'm a capitalist pig. Then I would borrow more money to plant Christmas trees, white pine or fruit trees. We received agricultural tax abatements. Then we would build one or two modest homes on the road frontage. There was one time when I cut some huge white pine trees that I still remember!! I had a family to feed! Anyway the Maine Forest is doing great. The largest landowner is an Italian forest products company!! Go figure! And they let us peons use the wilderness!! Damn corporations! For better or for worse you would not even be reading my gibberish right now if it were not for these freakin characters....who by the way are wicked smaht! Smatta than you or I! Ayuh!

[@jacobsladder6715]

@@9SmartSand6 they don't do that anymore...

[@9SmartSand6]

@@jacobsladder6715 Oh, really? Do a little research.

[@pillaryclinton6187]

@@vincentconti3633 that actually sounds pretty legit to do. You're giving me an idea. You got an email I can talk to you about this?

[@fauzanceros]

If you’ve got a hope and a belief and a dream, follow it. No matter what.

[@Vjl5280]

Using other peoples money to make money.

[@henryzhang9915]

Low valuation is the key!!!

[@henryzhang9915]

@Teringventje I seems so.

[@MejorContoneo]

He looks like Ray Liota

[@adamusein]

Michael 10 no way

[@MiamiPush2theLimit]

Yes!!!

[@dallasman1947]

Hahah I thought the same!

[@KARINA-dd7ut]

how much death from tobacco???

[@j.anderson4254]

You're only obscure until you take the impossible and make it possible. May not love the execution but the idea is awesome. Kohlberg, Kravis, and Roberts visionaries.

[@rcjewells]

Let's see what they can do with WMIH

[@mohammadmajid9716]

blessed with the "look"

[@hrishikeshkalshetti7299]

Thank you Bloomberg

[@alt_al]

13:39 KKR finds RJR

[@kevinlancewicz4030]

And?

[@dav676]

So many ads come on....

[@McNature100]

You guys are ridiculous with all these commercials.

[@nishanta4067]

This is pure gold

[@ajhome68]

a movie can be made in kravis life, Joaquin Phoenix resembles him

[@lylmurphify]

this really didn't age well...

[@Kingbynature]

This guy look like an actor ive seen before.

[@Kingbynature]

JSavic more like Ray Liota lol

[@ricosuave5375]

+PaperChaser Joaquin Phoenix

[@keimo2007]

larry de liquidator?

[@LayeDiaw]

PaperChaser Joe Pesci

[@TsarOfRuss]

Money and morals don't go hand-in-hand

[@thanhhuyen0000]

does anyone know another programs like this??

[@rec1962]

No

[@fabiokaya202]

business casual is pretty decent and coldfusion

[@sophiekoko7621]

Braves ones CNBC

[@sendkite5016]

he has declined because unlike these get rich ads on youtube he doesnt flaunt , show off his wealth . real rich people

[@BullyBoyAF]

He just bought the company I work for

[@jorgegomez524]

Vin 1000 how did that workd ?

[@001HK0]

RIP

[@ridhoramadhani4641]

He basically invented a private equity industry, a whole industry with thousands of jobs and clients. So he's not all bad

[@regismubayiwa6457]

Ridho Ramadhani it's now a 2 trillion dollar industry

[@moneymagnetelizabeth]

Ridho Ramadhani how many did he bankrupt along the way and now homeless, let's say counties by NOW

[@YoungDen]

His nickname should be Pac-Man

[@DMWBN3]

You could look it that way, or alternatively say they poached businesses from families & lent money to people who could ill afford it then paid themselves gigantic fees & bonuses that came back to fuck old established businesses, people & Americans

[@voicification]

LOL they created maybe 100s of jobs at best but definitely destroyed 100s of thousands. PE is all about cost cutting, asset stripping, and in general bleeding companies dry. Even pension funds are on the table. Source: I work a lot with PE firms

[@ericwsmith7722]

What I dont really understand completely, is why would the people ( hedge funds, junk bonds ,,,were ever ) who loaned him money to buy those companies, pay him a fee ? The only analogy I can think of of, is a bank loans you money on a car, you claim is a great deal,,,, then they give you 10% because you found the car ..... Sounds like greed with a touch of lazy

[@jen_nice2059]

eric wsmith he’s providing the service of investing cash that would other be paid out to depositors and weighing on the balance sheet.

[@doughtymqan]

Borrow $100mm. Buy a company for $100mm sell off assets for $110mm, pay lender back more than you borrowed and collect a fee.

[@johnbenjamin2703]

@@doughtymqan That fee is really profits corporately And personally cause you paying For his so called innovative idea.. Time and money now pay up.. Jb.ok

[@steosman]

Ads with a short program. Too many ads

[@debralegorreta1375]

Boycott the corporate-owned US two-party system. Vote for a third-party candidate of your choice.

[@AdrianDucao]

China

[@miadahhajbi6442]

How you can fight criminals if this the way his sporters talk

[@nat.serrano]

He's a LEGEND

[@youngyoungj]

Is the narrator the same guy who does World Report for the LDS Church?

[@jessed0308]

I love Lenny Kravitz.

[@gRosh08]

Shorting the Dwarfs' on Wall Street... is abetter slug line.

[@dagger732]

Superb Video! I'm watching this as preparation for my Management Buyout class tomorrow, in my MBA.

[@EvanQiu]

0:22 This guy looks quite competent, I think he should run for president

[@user-or7ji5hv8y]

Not sure why it is necessary to portray him in a sympathetic light given that the only he did primarily was mostly for himself.

[@gordongordon98]

Actor michael stuhlbarg could play Kravis perfectly

[@Jodi_Crypto_Leader22]

Henry Kravis just invested into crypto yesterday

[@davidcookmfs6950]

Is that true, or are you promoting a pump and dump?

[@vincentconti3633]

@@davidcookmfs6950 lie!

[@learnallican3627]

7:48 😂😂 WHY did that guys just do that? to look cool?

[@kwakekamdivasi591]

Lol, crazy right

[@mohamedelyaouti2051]

damm hes so cool, and intimidating haha, he sounds like he just survived a strangling on the way to work.

[@independentposts4238]

How fitting to end it with a quote from our President - Trump!!! Loved it!!

[@jkardez4794]

A five time bankruptcy specialist , Trump .

[@jadmcm007]

Read Barbarians at the gate when I was 18 - inspiring - came across this yesterday. Great little piece. Pretty sad they left off with Trump....

[@paideia-e9u]

And therefore, our noble people, What is the transcendent superior wisdom, for the sake of Global Humanity, Oneself, and Immortality, according to the Ancient Secret Wisdom; what are the five kinds of richness, most powerful knowledge and wisdom that every individual could and should possess? Could you help humanity? PaideiaEsotericSociety Twit: AbsoluteWisdom4

[@comacoma-fs5xk]

10:35 in the background lol

[@InfamousKicker]

No one peek he called it a cotton picking degree 😂😂

[@1FatHappyBirthday]

When are you going to learn? It's all a scam.

[@keepingyouincheck8533]

Explain how simple financial tools that were innovated by pure economic genius be a scam.

[@1FatHappyBirthday]

The tools aren't the scam. The people scam. People always scam. Lies lies and more lies just to keep the 💰 flowing. The ONLY thing that matters is the flowing money at all costs.

[@keepingyouincheck8533]

Cool.Hand if making money is a major character flaw. Then so be it

[@truthwritten7454]

@@keepingyouincheck8533 Basically he brought no value to anyone except that he pumped a dream to large investors that he can buy a company and sell it for more later making money for himself and his investors but adding nothing of value - basically he created his own stock market - the LBOs were the stock.

[@hakshustletv]

@@truthwritten7454 If he didn't fulfil that and continuously sold lies by all means call it a scam but if he delivers & it's not a pyramid scheme that's what Private Equity firms do. Purchase companies or invest in them, turn them around or help their growth and profit from it. That's immense value.

[@asherreich9820]

Absolutely gripping. Great production.

[@bxbank]

So much for undervalued at $21b ...

[@kevinotero2141]

from a bear to a bull nice like this dude

[@b_to_the_b]

These people boasting about how Great Wall Street is but ignoring the massive unemployment and poverty it has caused in America

[@jalepezo]

I guess this shows why people still distrust finance and wall street: instead of making money inovating and catering to peoples need, they "fix and sell" companies, that in practice means paper and spreedsheets, cero product development, cero consumer satisfaction improvement. A financial deal takes places outside consumer market, and in complex market, where numbers - not products - are the only metric.

[@pandap.]

Documentary about a thief.

[@colegleeson3342]

A thief in finance would be Madoff; Kravis operated far into the moral gray area but made his money through a well thought out novel business idea. He may be a questionable person but the majority of profits he made were on highly audited, highly public transactions where forgery/theft would be next to impossible.

[@abubatatu3241]

(Structural adjustment programs are basically LBOs of governments, both are useful tools in trust building, لا اله الا الله محمد رسول الله)

[@victorvictor8587]

Earth and the Universe Keep Hell in Business .

[@henryzhang9915]

Warren Buffett would laugh at these boys.

[@yashk246]

These boys would laugh at you

[@leapinglaura7343]

Henry ktavs

[@eugenesteele3774]

Whatever your going to do today, is it more important than saving 21,000 lives today. That is how many people die each day of cancer. Cancer as been curable for over one hundred years. You can change that and make a profit. Can you help us?

[@filmawayvlad]

Bravo

[@h.m.sanchez4934]

Wow i like this guy

[@vicchavez6570]

The title makes no sense

[@miadahhajbi6442]

See how they describe criminals

[@LukeBrown6669]

Ray liotta doppelgänger

[@Skhulu]

the theme son that plays on that part where Henry won the deal who made it?

[@harisankar125]

EVIL

[@watchfan89355509]

Love this subject, only if there's an English subtitle, that would be great!

[@Hotshotdriver]

The big short

[@IAMSHADZ]

Impeach him!!

[@henryzhang9915]

2015年万科遇到了野蛮人，中国证券史上经典一战。

[@pattimaeda6097]

Henry Zhang post on a Chinese site not here

[@henryzhang9915]

@@pattimaeda6097 No, 你这个多管闲事的傻叉

[@shaunwee1773]

野蛮人是谁

[@ajaytyagi4854]

Trump is everywhere.

[@chrisgardiner2215]

What dopes !!!!!!!! stocks, paper, property as in real estate are all WORTHLESS !!!!!!! if you do not have gold or silver...... you have no economic footing at all