NEW YORK: KKR & Co., the private-equity firm run by Henry Kravis and George Roberts, said it had a third-quarter profit of $656.6 million in its first report after becoming a publicly listed company as buyouts rebounded.

Profit adjusted for the impact of an Oct. 1 merger with its publicly traded European fund would have been about $300 million less, the New York-based firm said yesterday. KKR, whose shares are listed in Amsterdam, lost $465.6 million in the year-earlier period.

Deal-making is picking up along with debt and equity markets after a two-year drought caused by the global credit crisis. KKR, founded in 1976, has announced two buyouts in the past six months and its private-equity commitments rose to $1.1 billion from $326.6 million in last year's third quarter, according to the statement.

"We are seeing interesting situations to invest capital all over the world, across various industries and throughout the capital structure," Kravis and Roberts said in the statement, noting improvement in equity and debt markets.

The Standard & Poor's 500 Index has rallied 62% from its 12-year low on March 9. Loan prices as measured by S&P/LSTA US Leveraged Loan 100 Index, which tracks the most-actively traded loans, has gained a record 37% this year after declining in 2008.

Assets under management were $54.8 billion, as of Sept. 30, compared with $50.8 billion in June and $58 billion a year earlier. KKR said it had uncalled private-equity commitments of $14.2 billion at the end of the third quarter.

IPO market

The firm completed public listings in the quarter for companies it owns including chipmaker Avago Technologies Ltd. and discount retailer Dollar General Corp.

KKR has said it may seek to move the Amsterdam listing to the New York Stock Exchange next year. Blackstone Group LP, the world's largest private-equity company, went public in New York in June 2007. Blackstone trades at about half its $31-a-share IPO price.

Shares of KKR have surged more than 50% since June, when the firm announced plans to complete the merger with the European fund, known as KKR Private Equity Investors LP. The stock slid 20 cents, or 2.2%, to $8.80 yesterday in Amsterdam.

The firm also reported separate results for KKR Guernsey, the portion of the new firm formerly known as KKR Private Equity Investors. Its net asset value rose to $3.5 billion from $3 billion in June.

$300 million adjustment

KKR said the third-quarter profit of $656.6 million should include "certain adjustments" totaling about $300 million related to the merger, including gains associated with some KKR funds held by KKR principals.

KKR and private-equity firm General Atlantic LLC agreed earlier this month to buy a government-consulting unit of Northrop Grumman Corp. for $1.65 billion. KKR purchased Oriental Brewery Co. earlier this year from Anheuser-Busch InBev NV.

The firm has moved into non-buyout areas including capital markets in an effort to increase profits. The capital markets division helped underwrite the Dollar General IPO.

KKR is carrying its interest in discount retailer Dollar General at about 1.7 times cost, according to the statement. It values its investment in Energy Future Holdings Corp., the power producer formerly known as TXU Corp., at about 50 cents on the dollar.