20VC: Inside KKR's Monster $8BN European Fund | The $500M Turkey Gamble That Went Wrong | Do Andreessen & General Catalyst Scare KKR? | Will AI Kill the PE Model? | Can The PE Model Survive without IPOs and Where is the Liquidity with Philip Freise
20VC: Inside KKR's Monster $8BN European Fund | The $500M Turkey Gamble That Went Wrong | Do Andreessen & General Catalyst Scare KKR? | Will AI Kill the PE Model? | Can The PE Model Survive without IPOs and Where is the Liquidity with Philip Freise
20VC: Inside KKR's Monster $8BN European Fund | The $500M Turkey Gamble That Went Wrong | Do Andreessen & General Catalyst Scare KKR? | Will AI Kill the PE Model? | Can The PE Model Survive without IPOs and Where is the Liquidity with Philip Freise
In a wide-ranging conversation, Philipp Freise of KKR unpacks the evolving landscape of European private equity, drawing from decades of experience at the intersection of macroeconomics, technology, and long-term capital allocation. From hard-won failures to bold bets during crises, he offers a candid look at how global shifts are redefining investment strategy.
Philipp Freise reflects on a $500M loss in Turkey as a pivotal lesson in geopolitical risk, underscoring the impact of trade policy and Chinese manufacturing on European industries. He details KKR’s disciplined approach during downturns, deploying 40% of its $8B European fund during COVID while avoiding overheated markets in 2021. Contrary to venture-style power laws, KKR emphasizes portfolio balance and active management of underperformers. Despite AI's rise, Freise argues that rational capital allocation remains timeless, though capital intensity in tech is shifting. A $3T liquidity backlog looms in venture due to stalled IPOs, pushing firms toward private exits. Freise sees Europe’s fragmented capital markets as a structural hurdle, advocating for a capital market union. Looking ahead, KKR aims to expand retail access to private markets and grow its European AUM significantly, betting on defense, AI, and deep tech amid global instability. Missed opportunities like Spotify and Alibaba reinforce the value of patience and strategic endurance over chasing outliers.
05:45
05:45
Choosing the right investors matters more than the amount raised.
09:16
09:16
KKR invested a major portion of its fund during COVID, betting on post-pandemic recovery
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12:36
KKR got lucky by deploying more capital early in the pandemic and staying out of the 2021 market frenzy.
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16:00
10 - 15% of the $8 billion fund is reserved for follow-on investments
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17:13
Real businesses like fertility clinics won't be replaced by AI and still require cash.
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18:45
Outstanding venture investors need deep vertical experience and knowledge.
22:50
22:50
Only 15% of KKR's exits over 15 years were IPOs, highlighting reliance on private exits.
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31:52
Innovation is the answer to defense-related problems and is accelerating faster than expected.
32:44
32:44
AI is a major transformative force in productivity and innovation
39:19
39:19
Europe’s fragmented markets need a capital market union for growth
42:57
42:57
Every Norwegian is a millionaire thanks to the Sovereign Wealth Fund
44:15
44:15
Inflation may be used to erode debt when taxes can't be raised and spending can't be cut
45:38
45:38
AI may remove more people from the labor force even if it boosts productivity
47:03
47:03
Norges Bank could redistribute AI-generated wealth to the public
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51:06
What once seemed everything turned out to be relatively unimportant
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51:38
It's not about the money — learning is the priority.
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53:00
Investing at KKR is a long-term marathon.
