KKR closes on $4.7B Global Atlantic deal adding $90 billion of Assets Under Management

KKR completes its previously announced acquisition of Global Atlantic Financial, one of the U.S.’s largest fixed rate and fixed annuity providers, in a transaction that’s expected to add around $90B to KKR’s assets under management. KKR acquired ~60% of Global Atlantic in a transaction valued at ~$4.7B.

Driven principally by three reinsurance block transactions, that represents asset growth of ~25% since the announcement of the transaction.

Global Atlantic will continue to operate as a separate company. KKR will serve as investment manager for Global Atlantic, allowing Global Atlantic access to KKR’s origination engine and asset management capabilities while maintaining a prudent risk-adjusted investment strategy.

Following the announcement of the transaction, KKR led an equity co-investment process resulting in significant investor demand from new and existing investors in Global Atlantic, including Global Atlantic’s leadership team.

The co-investment process also generated an additional $250M of primary equity capital that will support Global Atlantic’s future growth objectives and provide financial flexibility.

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies.

Global Atlantic Financial Group Limited, through its subsidiaries, offers a broad range of retirement, life and reinsurance products designed to help our customers address financial challenges with confidence. A variety of options help Americans customize a strategy to fulfill their protection, accumulation, income, wealth transfer and end-of-life needs.

Global Atlantic was founded at Goldman Sachs in 2004 and separated as an independent company in 2013. Its success is driven by a unique heritage that combines deep product and distribution knowledge with leading investment and risk management, alongside a strong financial foundation.

Source: Business Wire