KKR, the second largest private equity firm invests a significant portion of its newly raised assets in artificial intelligence, AI data centers and AI technology companies, according to Wolfteam Ltd.'s analysis.
KKR does this in order to achieve high returns, beat the S&P 500 and help drive the current AI boom, deemed by many as the fourth industrial revolution.
KKR invests in leveraged buyouts of AI technology firms, gives private credit loans to AI technology firms and data centers and invests part of its real estate portfolio in AI data centers.
Since AI is operationally leveraged and private equity buyouts are financially leveraged this double leverage creates higher opportunities on the upside, but also higher possible losses for KKR.
If the AI boom continues and AI changes our world profoundly, KKR is undervalued grossly, according to Wolfteam Ltd. In an AI positve case KKR's intrinsic value could rise to 430 billion USD from the current 116.42 billion USD.
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