Deals

State Pension Funds Question KKR on Role in Toys ‘R’ Us Demise

Minnesota, Washington boards discussed issue in June meetings
Labor activists pressuring pensions to confront private equity

AToys 'R' Us store at Times Square in New York on May 11. — AToys 'R' Us store at Times Square in New York on May 11.
Photographer: Jeenah Moon/Bloomberg

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By Katrina Compoli, Melissa Mittelman, and Eliza Ronalds-Hannon

June 22, 2018 at 5:29 PM UTC

This article is for subscribers only.

KKR & Co.’s leveraged buyout of Toys ‘R’ Us is coming under scrutiny by state pension funds that are questioning the private equity firm’s role in the bankruptcy of the world’s largest toy retailer.

The Minnesota State Board of Investment decided last week to temporarily halt future commitments to KKR as it reviews the investment, while the Washington State Investment Board spent more than an hour Thursday discussing the holding and asking the private-equity firm to account for its actions.