KKR expects to raise up to $1.73 billion by way of a convertible stock offering to expand its investments. The private-equity and investment company said Tuesday that it has begun an offering of 30 million shares of its series D mandatory convertible preferred stock to raise an initial $1.5 billion.

KKR intends to use the net proceeds from the offering for the acquisition of additional equity interests in core private equity portfolio companies reported in its Strategic Holdings segment and for other general corporate purposes.