Private equity group KKR reported third-quarter results recently, the first time as a listed company. Despite rising profits and assets under management, details on the valuations of some of its largest company holdings didn’t make for particularly pleasant reading.

Stakes in hospital operator HCA and discount retailer Dollar General were valued above their initial costs, but investments in 11 other portfolio companies remained underwater. With time, many of these investments may pay off. But now that KKR must answer to outside shareholders, it will need to make a special effort to preach patience on the US$14bn it has yet to invest.

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