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How private equity came to resemble the sprawling empires it once broke up

As the surviving founders at KKR step down, some experts warn the industry could exhaust its capacity to maintain high returns

From the top floors of a skyscraper that crowns the biggest New York office development since Rockefeller Center, a few hundred highly paid executives oversee one of the most pervasive enterprises that American capitalists have ever built.

Less than half a century after it was started as a boutique investment vehicle run by two wealthy cousins, KKR has become a corporate behemoth. The firm’s $170bn lending arm manages as many assets as some regional banks, and that is just the start.

If the mosaic of assets managed by the firm’s private markets division were folded into one entity and listed on the stock market, its market capitalisation could exceed $100bn — comparable to industrial giants such as General Electric, Lockheed Martin or 3M.

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