KKR, the buyout firm hit hardest by turmoil in the credit markets, may have to delay its own initial public offering as investor jitters spread to the stock markets.

The American private equity firm said in an IPO filing on July 3 that it was trying to complete financing on 11 transactions valued at $140 billlion, struck during the buyout boom earlier this year, The Wall Street Journal reported.

However, with credit markets in disarray, much of the debt backing those deals has got stuck in the hands of the underwriting banks, who are unable to syndicate the loans as investors get more nervous about high-risk leveraged buyouts. The result is that many of those deals, including the $44 billion takeover of Texan utility TXU Corp and the £11 of Alliance Boots, will need to be restructured and re-priced if they are to be successfully sold in the market.

That will leave previous valuation estimates of KKR in tatters, which could be enough to stop the IPO in its tracks and potentially tarnish the buyout firm's reputation.

So far, the underwriters say there has been no pullback on timing or commitment for KKR's IPO, according to a senior executive at one of the investment banks underwriting the offering.

One source close to the private equity firm conceded that the market turbulence could "potentially" effect the timing of the IPO but said KKR was working to its deadline of a listing some time in September.

"They will be monitoring the situation and if the conditions look like it will be a prolonged period (of market turmoil) then maybe they will wait but that's not where they are at the moment," the source said.

KKR's IPO will follow the listing of rival buyout firm Blackstone, whose shares have tumbled about 17 per cent since their debut at $31 a share. They closed yesterday at $25.70.

KKR declined to comment.

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