Private equity firm KKR has said that it will buy the remaining stake in insurance and pension service provider Global Atlantic Financial Group in a $2.7 billion deal.

The all-cash deal will see KKR pick up the remaining 37 per cent of Global Atlantic that it does not already own, the company said on Wednesday.

KKR has served as Global Atlantic’s investment portfolio manager since 2021, with the firm noting that Global Atlantic’s assets under management have grown significantly, up from $72 billion in 2020 to $158 billion today.

Global Atlantic, KKR said, has leveraged its partnership to establish new business relationships in Hong Kong, Singapore and Japan.

The deal will see KKR pay Global Atlantic’s minority shareholders an amount in cash equal to 1.0 times Global Atlantic’s book value with certain adjustments. KKR will fund the transaction from its balance sheet, which had $23 billion of cash and investments as of September 30, 2023, with the deal expected to close in the first quarter of 2024.
Joe Bae and Scott Nuttall, co-chief executive officers of KKR, said: “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.”

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