KKR’s Income Opportunities Fund to Buy Insight Select Income Fund
KKR Income Opportunities Fund (KIO), a close ended fixed income mutual fund launched by KKR, agreed to acquire the assets of Insight Select Income Fund (INSI), in a move set to reshape the landscape of income-focused investment funds.
INSI shareholders will receive KIO shares and may elect to receive up to 5% of the consideration in cash. In addition, KKR will offer a waiver on its management fees to all shareholders that would decrease the fee from 1.10% to 0.99% for the 12-month period after the acquisition. The transaction is intended to be structured as a tax-free reorganization.
Upon closing of the deal, INSI, a closed-end management investment company managed by Insight North America LLC., will no longer have its shares listed on any public market. KIO will continue to focus on investing in first and second lien secured loans, unsecured loans and high yield corporate debt instruments and will continue to trade on the New York Stock Exchange under its current ticker symbol.
“We are excited to welcome the INSI shareholders to the KIO shareholder base. We see a compelling opportunity in credit and are confident we can continue to deliver strong outcomes in the years ahead,” said Jeremiah Lane, co-head of global leveraged credit at KKR.
The transaction, unanimously approved by the boards of both funds, is anticipated to close in the fourth quarter of 2024.