KKR to Pay $2.7B for Full Ownership of Global Atlantic

KKR & Co will acquire the remaining 37% stake in insurance company Global Atlantic Financial Group that it does not already hold for roughly $2.7 billion in cash.

Under the terms of the deal, which is expected to close in the first quarter of 2024, KKR will pay Global Atlantic’s minority shareholders an amount in cash equal to 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. Upon closing, Global Atlantic will continue to be led by its management team and operate under the Global Atlantic brand.

“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,” said Joe Bae and Scott Nuttall, co-CEOs of KKR.

The acquisition raises Global Atlantic’s valuation to $7 billion, a substantial surge from the $4.4 billion valuation when KKR agreed to buy a majority stake in February 2021.

Global Atlantic has been a source of financial success for KKR, as well as a crucial component of the firm’s expanding real estate credit and asset-based financing businesses, both of which manage assets that are particularly well suited to insurance company balance sheets.

Global Atlantic’s assets under management have grown significantly, up from $72 billion in 2020 to $158 billion today.