KKR falls prey to subprime woes

A real estate investment fund owned by KKR suffered a 31 percent fall in its share price yesterday, after the vehicle was forced to sell $5 billion of residential mortgage loans at a loss.

Kohlberg Kravis Roberts’ real estate investment vehicle saw its shares tumble by almost a third yesterday after revealing that it had become the latest victim of turmoil in the US subprime mortgage sector.

KKR Financial Holdings, the buyout giant’s real estate investment trust affiliate, saw its share price fall by 31 percent after it said it had sold $5.1

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