KKR & Co. agreed to acquire retirement and life insurance company Global Atlantic Financial Group for roughly $4.4 billion, the private equity firm announced in a news release.
Under the terms of the agreement, KKR will acquire all outstanding shares of Global Atlantic for an amount equal to its book value as of the date of closing. Global Atlantic's book value was about $4.4 billion as of March 31.
The transaction, which is subject to required regulatory approvals and certain other customary closing conditions, is expected to close in early 2021.
Once the deal closes, Global Atlantic will continue to operate as a separate business with its existing brands and management team. It will also continue to be run by its existing senior leadership team led by Allan Levine, chairman and CEO.
The acquisition is expected to expand KKR's permanent capital base, further scale its business and expand its position within the insurance industry.
KKR also plans to serve as Global Atlantic's investment manager. Global Atlantic will also gain access to KKR's direct origination services and asset management capabilities.
Through the acquisition, KKR's assets under management would increase to $279 billion from $207 billion as of March 31. Additionally, permanent capital as a percentage of KKR's total AUM would increase to 33% from 9%. Permanent capital, combined with KKR's long-term strategic investor partnership capital, would represent 42% of KKR's AUM.
KKR was advised by Simpson Thacher & Bartlett and Willkie Farr & Gallagher. Debevoise & Plimpton acted as legal adviser to Global Atlantic.
A KKR spokeswoman could not be immediately reached for comment.
