Kohlberg Kravis & Roberts said Wednesday that its European Fund II has yet to turn a profit as it confirmed that it has started fundraising for a new flagship North American buyout fund.

In a conference call to discuss KKR's first full-year results as a public company, William Janetschek, chief financial officer, said that Europe II was the only fund valued at less than the cost of its investments. All the rest of the funds, including its third European fund, KKR European Fund III, are in profit.