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KKR<\/a> & Co. Inc., CrowdStrike Holdings<\/a>, Inc. and GoDaddy<\/a> Inc. will join the S&P 500 as part of its latest quarterly weighting change.<\/p>\n The companies will replace Robert Half<\/a> Inc., Comerica<\/a> Inc., and Illumina<\/a> Inc, according to a press release from S&P Dow<\/a> Jones Indices Friday. The changes are set to go into effect prior to the open of trading on Monday, June 24.<\/p>\n New York-based KKR\u2019s inclusion underscores the massive growth of the private investment business in recent years. KKR, founded in 1976 by Henry Kravis, Jerome Kohlberg and George Roberts, recently laid out a plan to reach at least $1 trillion of assets under management in five years, in part by courting retirees and individuals. Famous for its private equity moves, the firm has expanded across strategies from buyouts and credit to infrastructure, real estate and insurance.<\/p>\n Shares of KKR rose 6.5% in after-hours trading.<\/p>\n Meantime, CrowdStrike and GoDaddy\u2019s additions come as stock investors are flocking toward software companies in a bid to capture the growth of cloud computing and artificial intelligence.\u00a0<\/p>\n Shares of cybersecurity firm CrowdStrike rose 9% in after-hours trading. The stock has more than doubled over the past year to become the second-best performer in the tech-heavy Nasdaq<\/a> 100 Index, surpassed only by Nvidia<\/a> Corp.<\/p>\n On Tuesday, CrowdStrike\u00a0delivered<\/a>\u00a0first-quarter earnings that beat Wall Street\u2019s expectations, despite a pullback in spending that has challenged its cybersecurity rivals.\u00a0<\/p>\n Shares of web-platform company GoDaddy have gained roughly 30% through Friday\u2019s close. Shares rose 4% in after-hours trading Friday.\u00a0<\/p>\n To qualify for the S&P 500, companies must be highly liquid US firms with a market capitalization of at least $18 billion and meet profitability, liquidity and share-float standards. As of May\u2019s\u00a0methodology<\/a>, thresholds for the S&P MidCap 400 Index and S&P SmallCap 600 Index are $6.7 billion to $18.0 billion and $1.0 billion to $6.7 billion, respectively.\u00a0<\/p>\n Inclusion in the benchmark is becoming more important for companies in a world increasingly dominated by passive investment funds. Furthermore, a spot in the coveted S&P 500 boosts a company\u2019s investor profile and adds to trading liquidity \u2014 factors that can potentially propel its stock price higher.\u00a0<\/p>\n Expulsion from the benchmark can weigh on stock prices, as passive investors are forced to sell the shares and realign with the S&P 500\u2019s new composition.<\/p>\n<\/div>\n\nSubscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up<\/a> for free.<\/div>\n<\/div>\n