KKR shares jumped Thursday after the private equity firm announced a plan to convert to a corporation from a partnership.
Shares traded more than 3.5 percent higher Thursday morning. During the premarket, it had gained as much as 10 percent. A corporation allows shareholders to receive more of a company's profits than a partnership, in which the partners have a greater stake.
The conversion to a corporation will become effective July 1, the company said in an earnings release Thursday.
As a corporation, KKR plans to pay an annualized dividend of 50 cents per common share and increase its authorized share repurchase amount to $500 million.
"KKR's conversion from a partnership to a corporation is designed to broaden our investor base, simplify our structure and make it easier to invest in our shares," Henry R. Kravis and George R. Roberts, co-chairmen and co-CEOs of KKR, said in a statement.
"We believe this change, together with continued strong performance, will increase our ability to generate significant long-term equity value for all of our shareholders," they said.
The private equity firm also reported quarterly earnings that beat expectations on the top and bottom lines, according to FactSet.