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Alternative Market Briefing

KKR to buy Global Atlantic for $4.4bn

Thursday, July 09, 2020

Laxman Pai, Opalesque Asia:

Private-equity giant KKR agreed to acquire retirement and life insurance company Global Atlantic Financial Group for roughly $4.4 billion.

According to the New York-based PE firm said it would pay the amount of Global Atlantic's book value as of the deal's closing, through a combination of cash, proceeds from potential minority co-investors and debt or equity. The deal is expected to close in early 2021.

KKR said that it would operate Global Atlantic as a separate business and that Global Atlantic would keep its current management team and brands. KKR would become Global Atlantic's investment manager.

The acquisition is expected to expand KKR's permanent capital base, further scale its business and expand its position within the insurance industry. Through the acquisition, KKR's assets under management would increase to $279 billion from $207 billion as of March 31.

Additionally, permanent capital as a percentage of KKR's total AUM would increase to 33% from 9%. Permanent capital, combined with KKR's long-term strategic investor partnership capital, would represent 42% of KKR's AUM.

Global Atlantic serves more than 2 million policyholders through its retirement and life insurance products.

Henry Kravis and George Roberts, Co-Chairmen and Co-Chief Executive Officers of KKR said: "Global Atlantic is a best-in-class business with a like-minded entrepreneurial management team. Our businesses are complemen......................

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