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KKR to Benefit from Acquisition of USI Insurance Services

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Acquisition completed

In May 2017, KKR & Company (KKR) and CDPQ completed their acquisition of USI Insurance Services.

Both KKR and CDPQ will have equal ownership in USI. The companies will be acquiring the insurance company from Onex Corporation for $4.3 billion. Their acquisition of the company will take effect via their private equity partnership.

KKR and CDPQ’s private equity partnership was created to make long-term investments, which involve a lower amount of risk. KKR’s management expects strong returns from the CDPQ acquisition in the long term.

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KKR made deployments amounting to $3.5 billion in its private equity division in 1Q17, with most of these deployments being made in Asia. In Asia, company’s private equity division deployed $1.9 billion. The company’s Asian Fund II has completed its deployments and could experience modest fundraising in 2Q17.

KKR has committed to deploying more than $750 million in private equity in Asia. In Europe, the company plans to deploy ~$600 million. These deployments are expected to be made in 2Q17 and 3Q17.

Assets under management

KKR & Company’s private equity division had assets under management (or AUM) of $80 billion on March 31, 2017. Alternative asset managers (XLF) had the following AUMs in their private equity divisions on March 31, 2017:

  • Carlyle Group (CG): $53 billion
  • Blackstone (BX): $99.7 billion
  • Apollo Global Management (APO): $45 billion
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