Kohlberg Kravis Roberts is offering sweeteners to investors in the hope that it can rake in between $8bn to $10bn for its latest mega buyout fund, according to prospective investors. The move marks the latest attempt by a private equity firm to concede more favourable fund terms in a tough fundraising market.

For the first time, KKR is giving investors the choice between a lower management fee and more favourable split on fees charged to portfolio companies, which include transaction and monitoring fees. The firm's predecessor vehicle, the $17.6bn KKR 2006 Fund, gave 80% of fees charged to portfolio companies to investors, while 20% went to the buyout firm. Now investors can opt to receive 100% of the fees but must pay a higher management fee or they can stick with an 80-20 split without an increase in management fees.