Financial Exemptions, Solid Business Model Make KKR (KKR) Cramer's Choice

Kohlberg Kravis Roberts & Co. (NYSE: KKR) is showing a little life Tuesday, following some bullish comments by CNBC Mad Money Host, Jim Cramer.

Cramer said, along with The Blackstone Group (NYSE: BX), that KKR is exempt from new financial regulation, which will keep bigger investment banks like Goldman Sachs (NYSE: GS) with their hands tied behind their backs. Cramer said that KKR is his pick of the two.

Summarily, KKR's operations consist of borrowing money to buy companies, turning them around, and bank on subsequently successful IPOs. Cramer notes KKR nets about 3.3x its original investment on deals it has sold.

KKR delivers a distribution to unitholders equal to a yield of about 6.7 percent, and has $61 billion in Assets Under Management.

KKR is trading 1.7 percent better this morning.

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