Global investment firm KKR has completed the previously announced $2.7bn deal to acquire the remaining 37% stake in Global Atlantic Financial Group.
The all-cash deal, which was announced in November 2023, enables KKR to take full ownership of Global Atlantic Financial Group. The latter is a fixed rate and fixed annuity provider in the US that caters to individuals and institutions by addressing their retirement and life insurance needs.
KKR had previously stated that that Global Atlantic Financial Group represented a source of financial success and played a crucial role in the expansion of its real estate credit and asset-based financing businesses. These businesses manage assets that align well with the balance sheets of insurance companies, said the global investment firm.
KKR co-CEOs Joseph Bae and Scott Nuttall said: “Since day one, Global Atlantic has been a great fit for KKR, both from a business and cultural standpoint.
“With this new ownership structure in place, we look forward to even closer collaboration with Global Atlantic so that we can realise more of the synergies that we have uncovered in the first three years of our strategic partnership.”
In a transaction that closed in February 2021, KKR acquired a majority stake in Global Atlantic Financial Group, valuing the latter at approximately $4.7bn.
Since 2021, KKR has been acting as the asset manager for the annuity provider, providing access to its global investment and origination capabilities to benefit the policyholders of the latter.
As of the announcement of the most recent deal in last November, Global Atlantic Financial Group’s assets under management have increased from $72bn in 2020 to $158bn.
KKR said that the annuity provider’s management team will continue to lead it, and the company will function under the Global Atlantic brand.
Global Atlantic Financial Group co-founder, chairman, and CEO Allan Levine said: “KKR and Global Atlantic are a powerful combination. Our shared culture and commitment to excellence continues to enhance our ability to think – and invest – longer-term and deliver compelling solutions for our clients and policyholders.
“We are thrilled for what lies ahead as a wholly-owned subsidiary of KKR.”
