The largest holding in KKR & Co. Inc. portfolio is First Data Corp., the company Fiserv plans to acquire. KKR owns more than $998 million dollars of the stock ,or 10.1 percent of the portfolio, according to the firm’s most recent earnings report. That investment is made through private equity funds the company manages.

“Since December 31 through last night, First Data stock price has gone up by about $7.50 per share, or a 45% increase,” said William Janetschek, CFO of KKR, during the firm’s recent fourth quarter and year-end analyst call. Shares of First Data will be exchanged with Fiserv shares. The acquisition was announced in mid-January, after the end of the third quarter. Henry Kravis, co-chairman and co-chief executive officer of KKR, sits on First Data’s board.

[caption id="attachment_9693" align="alignright" width="300"] William Janetschek[/caption]

In addition, an affiliate of Kohlberg Kravis Roberts & Co. L.P., New Omaha Holdings L.P., which controls around 39% [including KKR & Co's shares] of the outstanding First Data common stock and 86% of the voting rights of First Data, has entered into a voting agreement in support of the transaction. Upon closing, New Omaha Holdings will own around 16% of the outstanding common stock of the combined company.

Among First Data’s clients in the mortgage arena is Ellie Mae, who integrated secure payments technology to process mortgage and appraisal fees That allows Ellie Mae customers to accept payment for loan origination, processing, underwriting, and credit report costs through the company's platform.

After the merger is complete, Fiserv will invest $500 million to enhance solutions and accelerate growth. It expects to generate $4 billion in cash flow in the third year after the transaction closes.

Efficiency gains will be around $900 million over five years, and Fiserv will refinance $17 billion in debt that First Data will have on its books when the deal closes.