KKR & Co. Inc. reports developments across its global investment business, including alternative asset management, capital markets activity and insurance solutions. Company news commonly covers operating results, fund and strategy activity, portfolio investments, co-investment vehicles, debt financing, and capital-structure updates.
KKR sponsors investment funds in private equity, credit and real assets, works with strategic partners that manage hedge fund platforms, and operates insurance subsidiaries that offer retirement, life and reinsurance products through Global Atlantic Financial Group. Recent company updates also reflect activity in technology growth, sports, sustainable infrastructure and insurance-related platforms.
KKR has acquired a 226,000 square-foot industrial distribution property in the Papago industrial park, Phoenix, Arizona. Built in 2000 and recently renovated, the facility is leased long-term to a leading industrial manufacturer. It offers features like 30-foot clear heights and direct rail access, ensuring efficient logistics. This acquisition expands KKR’s industrial real estate portfolio in Phoenix to approximately two million square feet. The deal was executed through the KKR Real Estate Partners Americas III fund.
KKR & Co. Inc. (NYSE: KKR) has appointed Evan Spiegel, Co-Founder and CEO of Snap Inc., to its Board of Directors. This addition increases the number of independent directors to eleven out of a total of fifteen board seats. Spiegel's expertise in technology and innovation is expected to enhance KKR's strategic direction. KKR is a leading global investment firm that focuses on alternative asset management and capital solutions, aiming to deliver attractive investment returns through disciplined investment approaches.
KKR has released a new macro report titled "Dream Big," authored by Henry McVey, focusing on the insurance industry's adaptation to low yields. The report is based on a survey of 50 CIOs managing nearly $7 trillion in assets. Key findings include a decrease in average investment yields from 4.2% in 2017 to 3.2% in 2021 and a shift towards non-traditional investments, now comprising 31.8% of portfolios. The report highlights ongoing interest in alternatives, including Private Equity and Infrastructure, while addressing concerns over inflation and the competitive landscape in the insurance industry.
KKR announced the completion of a tender offer for 262,937,672 common shares of First Gen Corporation, representing 7.3% of its outstanding shares. KKR waived its 205 million share limit and will acquire the shares at ₱33 (US$0.65) each, totaling ₱8.68 billion (approximately US$171 million). Post-transaction, KKR will hold a 19.9% stake in First Gen, which is a major independent power producer in the Philippines, generating power primarily through renewable sources. This investment underlines KKR's commitment to the Philippines and its infrastructure strategy.
KKR, Round Hill Capital, and Pulsar Properties announced the sale of the PULSAR IBERIA LOGISTICS portfolio to P3 Logistics Parks for €108.3 million. The portfolio spans approximately 112,000 sqm of logistics space, primarily located in the Greater Madrid (82%) and Barcelona (18%) regions, and is fully leased. The joint venture was formed in October 2018 to target logistics investments in Spain. KKR continues to prioritize logistics in Europe, backed by its funds, including the recently closed KKR Real Estate Partners Europe II, which focuses on value-add real estate investments.
KKR has announced the final closing of KKR Real Estate Partners Americas III (REPA III), a $4.3 billion fund focused on opportunistic real estate investments in the U.S. This successor to REPA II, which was raised at $2 billion in January 2018, displays strong backing from diverse global investors. KKR's real estate strategies now manage over $8 billion globally. The firm has expanded its dedicated real estate team to around 130 professionals, managing $33 billion in assets as of June 30, 2021. This milestone reflects KKR's growth in real estate investment since its strategy launch in 2011.
KKR has announced its acquisition of a majority stake in Probe CX, a leading customer experience and business process outsourcing provider. This strategic investment aims to enhance Probe's growth and digital capabilities. Founded in 1979, Probe services over 600 clients globally with a workforce of 15,000 across 33 offices. KKR's expertise in the CX sector will support Probe's expansion, leveraging its experience from previous successful investments. The transaction is expected to conclude by the end of 2021, pending regulatory approvals.
KKR has launched India’s first renewable energy infrastructure investment trust, Virescent Renewable Energy Trust (VRET), raising INR4.6 billion (approximately US$62 million) from various investors led by AIMCo. VRET, with a dual ‘AAA’ credit rating, aims to acquire renewable assets, initially encompassing nine solar projects with a capacity of 395 MWp. Furthermore, VRET is in talks to acquire an additional 55 MWp from Focal Energy. This move aligns with India’s goal of achieving 60% renewable energy capacity by 2030.
KKR reports a monetization update for July 1 to September 23, 2021, revealing over $800 million in gross realized carried interest and investment income. About 50% of this figure is from each category, primarily due to strategic sales and dividends from its portfolio. KKR emphasizes that this estimate does not project total revenues for Q3 2021 or the full year, as it excludes other income sources. The firm continues to focus on generating attractive investment returns through its disciplined investment strategies.
KKR has completed a significant investment in a joint venture with WS Development and PSP Investments for a new life science tower at 400 Summer Street in Boston's Seaport District. This 16-story building will be 635,000 square feet and serve as the headquarters for Foundation Medicine, which has fully leased the space. KKR's investment strategy focuses on high-quality life science properties, and this venture reinforces its presence in major U.S. biotech hubs, alongside a recent acquisition in San Francisco. The project underscores KKR's commitment to growth in the life sciences sector.