KKR agrees to record $250 million penalty

• KKR agreed to pay a $250 million civil penalty to settle U.S. allegations involving pre-merger filing violations.
• The penalty is the largest ever assessed for violations of the Hart-Scott-Rodino Act.
• KKR said outside law firms will fully reimburse the penalty and that it will not affect the firm, funds, or investors.

KKR (NYSE:KKR) agreed to pay a $250 million civil penalty to settle U.S. Department of Justice allegations that it failed to comply with pre-merger filing requirements in at least 16 transactions.

The Justice Department said the alleged violations occurred in 2021 and 2022 and included altered documents, missing filings, and omitted documents, while the proposed penalty is the largest ever assessed under the Hart-Scott-Rodino Act.

The Justice Department alleged that KKR altered documents in filings for at least eight transactions, made no filing for at least two transactions, and systematically omitted required documents in at least 10 transactions, while KKR said outside law firms will fully reimburse the $250 million penalty.

The settlement resolves the DOJ litigation and open investigations concerning KKR’s 2021 and 2022 HSR filings, while the proposed final judgment remains subject to court approval.

The DOJ said KKR had been required to make more than 100 pre-merger filings since 2021 and reported that the firm had more than $744 billion in assets under management, while the government initially sought more than $650 million in civil penalties.