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 & Co. Inc. (NYSE: KKR) has appointed Arturo Gutiérrez and Dane Holmes to its Board of Directors, increasing the number of independent directors to nine out of a total of thirteen seats. Gutiérrez is the CEO of Arca Continental, a major Coca-Cola bottler in Latin America, while Holmes is the CEO and Co-Founder of Eskalera Inc. and a former leader at Goldman Sachs. This move aims to strengthen KKR's leadership and governance as it continues to pursue attractive investment returns through its global investment strategies.
Integrated Specialty Coverages (ISC) announced that KKR will acquire a majority interest in the company, which specializes in advanced insurance distribution through AI and data analytics. Sightway Capital, the current majority stakeholder, will retain a minority stake. ISC, founded in 2017, generates around $300 million in specialty premium annually and partners with over 5,000 agencies. This acquisition aims to leverage KKR's extensive resources to expand ISC's technology and market reach while maintaining current management under CEO Matt Grossberg.
KKR has released a sequel to its 2021 Global Macro Outlook titled “Another Voice,” authored by Henry McVey. The report emphasizes a favorable macroeconomic environment characterized by reflation without runaway inflation amidst a global recovery. Key insights include expectations of above-trend nominal growth, driven by consumer strength and capital expenditures, while cyclical inflation is anticipated but not a long-term concern. The report advocates a cyclical investment strategy favoring pricing power linked to global growth.
FS KKR Capital Corp. (NYSE: FSK) announced financial results for Q4 and year-end 2020, reporting a net investment income of $0.63 per share. Adjusted net investment income rose to $0.72 per share. The company declared a Q1 2021 distribution of $0.60 per share, payable on April 2, 2021. Total net realized and unrealized gains were $0.53 per share, a decline from Q3 2020. The net asset value increased to $25.02 per share. The total fair value of investments decreased to $6.78 billion. The company is optimistic about future prospects, especially following its proposed merger with FSKR.
KKR and Rakuten have successfully completed their acquisition of Seiyu GK from Walmart, resulting in KKR holding a 65% stake and Rakuten's subsidiary 20%. Walmart retains a 15% stake. This new ownership structure aims to leverage combined retail expertise and enhance Seiyu's digital transformation, targeting leadership in Japan's omnichannel market. Seiyu achieved record sales of JPY 785 billion in 2020, marking a 5.6% growth, with a nearly 5% EBITDA margin. The appointment of Tsuneo Okubo as CEO is expected to drive future growth and digital strategies.
Optiv Security has awarded its inaugural Black Employee Network (BEN) scholarship to Lauren Harris, a student-athlete from Omaha, Nebraska, who will study biology and computer science at Princeton. The scholarship provides $10,000 annually for four years. Additionally, three runner-ups will receive $500 grants for books. Optiv's CEO, Kevin Lynch, emphasized the importance of diversity in the industry, stating the company plans to sponsor four students concurrently in the future.
KKR has announced an agreement with Telefónica to create Chile's first open access wholesale fiber optics company, enhancing broadband access nationwide. KKR will acquire a majority stake in Telefónica Chile's fiber optic network, the largest in the country. The new company aims to expand broadband from 2 million to 3.5 million households by 2023, focusing on underserved areas. Valued at approximately US$1 billion, the deal is expected to close in the first half of 2021, pending regulatory approval. This initiative promises to boost competition in Chile's digital infrastructure market.
KKR has announced an agreement to acquire Flow Control Group, a prominent distributor specializing in flow control and industrial automation products, from Bertram Capital. Based in Charlotte, NC, Flow Control Group serves over 10,000 customers and 2,000 suppliers across North America. KKR anticipates enhancing Flow Control's market reach and operational capabilities while focusing on employee engagement and ownership models. This acquisition, part of KKR's Americas XII Fund, underscores their commitment to growing companies in the industrial sector.
Optiv Security has announced enhanced capabilities to assist clients in navigating the Cybersecurity Maturity Model Certification (CMMC), a crucial set of DOD regulations for over 300,000 defense contractors. General David Petraeus emphasized the increasing cyber threats and the need for upgraded defenses. With full CMMC implementation expected by 2025, the DOD has mandated self-assessments for contractors, critical for bidding on contracts. Optiv aims to help organizations view CMMC as more than a compliance requirement, urging early action to safeguard against emerging risks.
KKR & Co. (NYSE: KKR) has announced that Robert Lewin, CFO, will be presenting at the Credit Suisse 22nd Annual Financial Services Forum on February 25, 2021, at 9:40 AM ET. Investors can access a live audio webcast of the event through KKR's Investor Center on their website. A replay will also be available shortly after the presentation for those unable to attend live. KKR is a global investment firm focused on alternative asset management and capital markets, aiming for attractive returns through disciplined investment strategies.