KOHLBERG KRAVIS Roberts yesterday delayed its New York initial public offering, originally planned for this year, in one of the clearest indications of how dramatically the tide has turned against the private equity industry.

The US asset management group, one of the pioneers of the leveraged buy-out industry, with more than $60 billion (€47.45 billion) under management, said regulatory complications were mostly to blame for the postponement of its float until next year.

It also warned of massive uncertainty, lack of transparency and a drying up of liquidity in the financial system, and said it could not be sure how badly the woes in the global economy and financial markets would affect its business.

KKR said: "The parties remain committed to completing the transaction, but do not at this point expect the transaction to close until 2009."

The group said it had put on ice its plan, unveiled in July, for its US parent to float in the fourth quarter by merging with its struggling Amsterdam-listed fund, called KKR Private Equity Investors and relisting in New York.

George Roberts, co-founder of KKR, told investors: "Today you can't raise any debt to do a buy-out. Obviously, it is a stressful time for everyone. But this is not a short-term business." The move shows how sharply conditions have deteriorated for private equity groups since the credit crunch started last year. - ( Financial Times service)