KKR & Co. Inc. has announced a definitive agreement under which it will acquire the remaining 37% stake in the insurance company Global Atlantic, increasing its ownership to 100%.
KKR will fund the transaction from its balance sheet, which had $23 billion of cash and investments as of September 30, 2023. Upon closing, Global Atlantic will continue to be led by its management team and operate under the Global Atlantic brand.
KKR has served as Global Atlantic’s asset manager Since 2021, offering access to its global investment and origination capabilities.
According to the firm, Global Atlantic’s assets under management have grown significantly, up from $72 billion in 2020 to $158 billion now.
“As Global Atlantic has grown, it has benefited from the scale of KKR’s asset management businesses in meeting Global Atlantic’s investment needs while maintaining a focus on risk management and continuing to deliver market-leading returns,” KKR explained.
The firm continued, “The strategic partnership has proven to be both an important source of capital for Global Atlantic and a driver of international growth, with Global Atlantic leveraging KKR’s global reach to establish new business relationships in Hong Kong, Singapore and Japan.”
Joe Bae and Scott Nuttall, Co-Chief Executive Officers of KKR, commented, “The strategic partnership we envisioned three years ago has exceeded our expectations. It has been transformative for both businesses and a great cultural fit that has enabled us to contribute to Global Atlantic’s continued strong performance and success, while also being a key driver of growth for KKR.
“We expect the new ownership structure will foster even closer collaboration, allowing us to fully leverage our complementary strengths and grow faster together.”
Allan Levine, Chief Executive Officer of Global Atlantic, said, “We are taking this step because we have demonstrated, over the last three years, that we are stronger together. Being part of KKR has strengthened our position as a leading insurance company and enhanced our ability to deliver compelling solutions for our clients.
“Moving from a diverse group of shareholders to a single one with KKR clarifies our objectives and allows us to think―and invest―longer term.
“Although we hope to unlock further value by taking this step in our capital structure, neither our client-first approach nor our investment and risk management framework will change, and the day-to-day experience of our clients and colleagues will feel very much the same as it does today.”
