Private equity firm Kohlberg Kravis Roberts & Co nudged another step closer to merging with its Euronext-listed fund on Tuesday after the fund received enough support from its unitholders for the deal.

Combining with KKR Private Equity Investors LP (KPE) is a roundabout way for KKR to gain a European listing, and is a step toward it following rival Blackstone Group in becoming a New York Stock Exchange-listed company.

KPE said on Tuesday that all of the conditions needed to complete the deal have been satisfied, and the two are expected to combine on October 1.

The consent solicitation period will continue until August 14, although any new consents will not change the outcome.

A majority of the unitholders had to approve the deal for it to go through.

KKR, co-founded by buyout king Henry Kravis, has investments in numerous household names such as Toys R Us Inc , mattress maker Sealy Corp and asset manager Legg Mason Inc .

KKR launched plans to list on the NYSE via a traditional initial public offering in July 2007, a month after Blackstone went public and just before the markets started to tumble.

It later proposed a more complex method of going public, by combining with KPE. In June, it formally withdrew the proposed New York IPO plan, but kept the door open for such a move, saying it had the ability to seek a listing in the future.

One boost to KKR's listing plans could be potential IPOs from its portfolio companies, if they are received well by the market.

One KKR-backed firm, Avago Technologies Ltd, is well into the IPO process. A Singapore developer of semiconductor devices, the firm's shares are expected to price on Wednesday and start trading the following day, according to underwriters.

KKR is also preparing for an initial public offering for one of its portfolio companies, discount retailer Dollar General, a source previously told Reuters.

(Reporting by Megan Davies; Additional reporting by Phil Wahba in New York; Editing by Gary Hill)

Investment