Co-Founder & Executive Co-Chairman, KKR
A Conversation with Henry R. Kravis, Co-Founder & Co-Executive Chairman, KKR
Henry R. Kravis, Co-Founder and Co-Executive Chairman of KKR, joins Columbia Business School for a conversation on leadership, entrepreneurship, and the evolution of global private markets.
About Henry Kravis
Henry Kravis, co-founder and executive co-chairman of KKR, participated in a fireside chat at Columbia Business School on June 17, 2026, and was honored alongside George Roberts at Claremont McKenna College (CMC) on April 30, 2026. At Columbia, Kravis discussed the founding of KKR, describing the firm's early culture as prioritizing a "we" over a "me" by sharing carried interest and fee income among all partners. He also addressed KKR's approach to artificial intelligence, stating the firm has chosen to invest in the "picks and shovels" side of the industry, including ownership of five platforms that operate over 200 data centers globally. Kravis advised students to gain hands-on experience working at a company before pursuing investing, and urged them to be prepared for failure, saying, "take that one sentence out of your vocabulary, and that is, 'I wish I had.'" At the CMC event, Kravis and Roberts shared lessons from their careers. Kravis argued that curiosity is essential for success in investing and business, and cautioned against early specialization, stating that "the world is changing so fast" and that specializing as a freshman or sophomore is a mistake. He emphasized that the firm's best investments have come during downturns, saying, "When everything looks the worst, that's the time, in our view, to lean in." Kravis also reflected on the challenges of partnership, identifying ego as the most difficult issue to manage, and noted that KKR underwent a significant transition around 1999 after a period of difficulty, which he described as a critical moment for the firm's survival.
Transcript (23 segments)
✨ AI-enhanced transcript with speaker attribution
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Jorge Guzman0:09
I am very excited to see so many familiar faces here, to meet one of the superstars at Columbia Business School, Henry Kravis, in this fireside chat on entrepreneurship. I'm Jorge Guzman, the Gantcher Associate Professor of Business. I research entrepreneurship and am the faculty co-director of the Lang Entrepreneurship Center. Mr. Kravis is a big benefactor to the school, a top entrepreneur in the finance industry, creating KKR, and a legend in the world of finance. Thank you for your time.
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Henry Kravis1:02
Nice to be here. Thank you.
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Jorge Guzman1:13
I'd like to start thinking about the entrepreneurial journey. One of the things we know about entrepreneurship is that it depends on that initial moment of taking a leap. When I was reading about how KKR started, you were doing a bet on a completely new idea, taking a risk by yourself and with others in your family. So take us back to that initial moment. How do you know that it was worth taking a risk with personal investment?
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Henry Kravis1:54
First of all, thank you all for your time. I think back, this coming Friday, KKR will be 50 years old. I started the firm with George Roberts, my first cousin, and Jerry Kohlberg. Jerry was 19 years older, and George and I were each 32, with three children each. I had no money; I put up $10,000 to start KKR. George did the same, and Jerry put up $100,000. So we started with $120,000. We had been doing what is now known as private equity, then called bootstrap acquisitions. We saw a real opportunity for alignment between management and owners, which was lacking in those days. We had the idea to align management and shareholders by having management put up real money. We aimed to raise a $25 million fund. We went to Bear Stearns, but they rejected us, so we resigned. We tried to raise the fund but couldn't on sensible terms. Henry Hillman, who funded Kleiner Perkins, offered to take half, but Prudential and MassMutual wanted to be the investment committee, which we refused. George Roberts and I then went to a steak restaurant and figured out how to get started. We estimated $500,000 to run KKR for a year and found eight individuals to put up $50,000 each for five years. They got to see every deal. We decided on a 20% carried interest, inspired by the oil and gas business's 'third for a quarter' model. Our first conversation was about dividing economics quickly, and the second about building a 'we' culture instead of 'my' culture. Fast-forward, KKR now has 38 offices, 5,000 employees, and 45 products, but the same culture of teamwork and participation remains.
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Jorge Guzman13:02
That's fascinating. One of the things we teach is that the founder sets the organization. Your story shows optimism—you have to believe that if you can raise the money, luck will follow. Can you tell us more about the entrepreneur's personality? How do you keep that drive and optimism? Is it innate?
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Henry Kravis13:50
It's a great question. I think a lot of it is innate. If someone is afraid of taking risk and making a mistake, they won't be an entrepreneur. You've got to be prepared to fail and pick yourself up. George and I felt that way. A friend asked if I was prepared to fail, and I said yes. He advised not to keep one foot on the dock and one in the boat—commit fully. I said I love the business and trust in Jerry and George was key. Trust is tantamount. You have to be prepared to take risk, and risk varies by investment type.
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Jorge Guzman16:41
It's fascinating because you balance optimism with protecting your downside. The MBA teaches analysis to protect downside.
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Henry Kravis16:52
Well, you got to. That's part of investing. Each kind of investing has different risk—debt, venture capital, infrastructure. There's no one-size-fits-all risk; it's what is the risk for the opportunity.
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Jorge Guzman17:41
Oh, I see. Another thing: at KKR, there's a sign that says 'Arrogance kills.' Can you tell us about that sign and how ingrained it is in KKR culture?
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Henry Kravis18:07
This sign is behind my desk. My former assistant had it made after hearing me say it so many times. Arrogance kills—I've seen arrogant people blow up. KKR doesn't have arrogant people; humility is key. Being humble is a sign of what we're about. Curiosity is essential: unless you're curious, you can't be a great investor. Too many people are narrow in thinking. You've got to see the whole landscape, not just one spot. For example, from my office window, I want you to say you see nothing but opportunity. Curiosity is the number one thing for successful investing.
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Jorge Guzman22:17
Right. Along those lines, another important thing is to be a good listener. You've got more ears than mouth.
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Henry Kravis22:34
Yes, exactly. So now, to pivot: the finance industry has big egos and a grueling schedule. Reading up, I was amazed at references to your family and co-founding with your cousin. How do you think about family as a successful finance professional?
Family comes first. I'm often asked about dinner with anyone, and I say my wife—she's brilliant with a PhD in economics. Make every day a happy day at work and at home. I've got two children and six grandchildren. Family is really important. George and I met at age two; our families were close. We've been co-CEOs for 45 years without major fights. We don't agree on everything, but we talk it out. Values and same objectives are key. Disruptive relationships often involve sex and money, but if you're pulling for your partner, you can go far.
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Jorge Guzman29:20
One of the things that comes through is you didn't talk about managing your schedule. When you frame work and family as exciting activities, the schedule works out easily.
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Henry Kravis30:05
There's a misconception that it's easy to climb the corporate ladder while being a parent. Something has to give. I got divorced because I was so focused on starting KKR and didn't focus enough at home. I made time for my children. Prioritize what's important to you—job or family. It's hard to do both, but make the time. Like philanthropy: pick a cause, get involved, and make a difference.
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Jorge Guzman41:05
We have two student questions. Amy, go ahead.
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Amy51:13
Hi, thank you for being here. My question is, looking back on your career, what decisions have you made early on that really meaningfully shaped how you approach investing and leadership today?
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Henry Kravis51:26
I could write a book about mistakes. Learning from mistakes is important. Make mistakes early so you can recover. One key lesson is the power of teamwork and getting ideas from everyone. Don't be afraid to speak up, even if the person is senior. Ask questions and keep at it if the answer doesn't make sense.
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Jorge Guzman53:26
Our last question is from Christine.
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Christine53:29
Thank you for being here. I studied at Mr. Kohlberg's economics building at Swarthmore and at Kravis Hall. I also built 30 Hudson Yards with Related. How do you see the future of private capital investment? What advice and compelling opportunities do you see for new graduates to start their careers?
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Henry Kravis54:12
It's a tough question. First, get in the workforce—there's no perfect job. I wouldn't start another private equity fund; the world has too many. If I were not doing what I'm doing, I'd buy a small company and do a roll-up, benefiting from permanent capital and compounding. Avoid the mistake of thinking you need the perfect job. Go work for someone to learn the basics. If you want to be on the investing side, work at a company first. Then, if you try something on your own, be prepared to fail and pick yourself up. Don't say 'I wish I had.'
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Jorge Guzman58:35
Thank you so much. We all valued your time. We learned a lot and are appreciative.
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Henry Kravis58:44
Thank you.