Thursday, December 16, 2010

KKR Financial (NYSE:KFN) Improves Capital Base

KKR Financial (NYSE:KFN) has improved their capital base with their secondary equity offering last week, positioning itself for investment opportunities.

FBR said, "We reiterate our rating and price target on KFN shares following last week's successful secondary equity offering pricing. We believe that proceeds simply bolster KFN's already strong capital base and enable the company to be more aggressive on the new investment front. While details regarding specific targeted assets and timing of capital deployment were scarce, we believe that management, as noted in past conference calls, has 'irons in the fire' across several asset classes, including investments in oil and gas assets, private equity/lending opportunities, and the potential for a new CLO."

FBR Capital maintains an "Outperform" rating on KKR Financial. They have a price target on them of $12.

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