KKR takes full control of Global Atlantic with US$2.7b acquisition

The news: KKR announced it would pay USD2.7 billion ($4 billion) to acquire the remaining 37% stake in insurance company Global Atlantic it does not already own.

The numbers: The transaction values Global Atlantic at over USD7 billion, a steep increase on the USD4.4 billion valuation implied when KKR first acquired a majority stake in 2021. The insurer’s overall assets have risen to USD158 billion since 2020.

The context: KKR has been Global Atlantic’s asset manager since 2021, opening the door to the private equity behemoth’s global resources and network. The synergies of the strategic partnership are clear, with KKR collaborating closely with the insurer to build out its real estate credit and asset financing businesses.

One of KKR’s main competitors, Apollo Global Management, has experienced similar success from its partnership with its own insurance affiliate Athene, with whom it merged in January 2022.