Track market-moving stories before they get noisy

NEW YORK & ZUG, Switzerland--(BUSINESS WIRE)--KKR, a leading global investment firm, today announced the agreement to acquire the Explosion Protection and Static Control segments from HOERBIGER, a diversified technology company headquartered in Switzerland with operations worldwide. The acquisition comprises the majority of HOERBIGER's Safety Business Unit, namely IEP Technologies (“IEP”) and Newson Gale, two established providers of industrial safety solutions. IEP Technologies is a provider o.

KKR (KKR.N) was hit with EU ​antitrust charges on Monday, alleging it misled regulators during ‌their review of its €22 billion acquisition of Telecom Italia's (TLIT.MI) fixed-line network two years ago, exposing the US buyout group to a potentially hefty ​fine.

The decision by the European Commission, the EU competition ​enforcer, followed a year-long investigation. It approved the deal ⁠in 2024, but opened an investigation a year later following complaints ​by other operators.

The rivals argued that prices for them to ​access TIM's fixed broadband network had been unilaterally increased after the deal, even though KKR had convinced the Commission that it would ​not have the power to deteriorate conditions for wholesale ​access.

The EU antitrust watchdog said it sent a charge sheet, known as a ‌statement ⁠of objections, to KKR for providing incorrect or misleading information about whether it would keep its existing long-term access agreements under the same terms unless mutually agreed otherwise ​with the third-party ​operators.

The Commission ⁠had cleared the Telecom Italia deal due in part to the long-term agreements between ​FiberCop, which is Telecom Italia's last-mile grid ​unit, and ⁠telecoms companies Fastweb and Iliad.

Companies found guilty of misleading regulators during reviews of their deals risk fines of up ⁠to ​1% of their aggregate annual worldwide ​turnover.

The Commission has in recent years handed out hefty fines for such ​violations.

($1 = 0.8919 euros)

India, Japan, and Poland are just some of the markets that will benefit as companies pursue the “security of everything,” says Henry McVey, head of global macro and asset allocation at KKR.

NEW YORK--(BUSINESS WIRE)--KKR, a leading global investment firm, today announced the agreement to acquire Gen II Fund Services, LLC (“Gen II”), a global leader in private capital fund administration, for a total enterprise value of $5.1 billion. KKR is acquiring Gen II from Hg, General Atlantic and other minority investors through its Core Private Equity strategy. Led by CEO Steven Millner, Gen II has built an experienced leadership team that will continue to lead the company. The strategic pa.

NEW YORK--(BUSINESS WIRE)--KKR & Co. Inc. (NYSE: KKR) announced today that it plans to release its financial results for the third quarter 2026 on Monday, November 9, 2026, before the opening of trading on the New York Stock Exchange. A conference call to discuss KKR's financial results will be held on Monday, November 9, 2026 at 10:00 a.m. ET. The conference call may be accessed by dialing (877) 407-0312 (U.S. callers) or +1 (201) 389-0899 (non-U.S. callers); a pass code is not required. A.

NEW YORK--(BUSINESS WIRE)--KKR today announced income from monetization activity in excess of $750 million with respect to the period from July 1, 2026 through September 25, 2026 based on information currently available. The quarter-to-date monetization activity is made up of approximately 80% realized performance income and approximately 20% realized investment income. The quarter-to-date monetization activity is driven by a combination of public secondary sales and strategic transactions, as.

LONDON--(BUSINESS WIRE)--KKR and Mirastar, KKR Real Estate's industrial and logistics platform in Europe, have acquired a 2.7-million-square-foot portfolio of eight UK logistics assets from Ares Real Estate funds. The portfolio comprises modern, high-quality assets across established distribution markets in the Midlands, South East and North of England, including Corby, Doncaster, Stoke-on-Trent and Milton Keynes. The assets benefit from strong connectivity to key population centres and transpo.

Henry McVey, partner, head of global macro and asset allocation and CIO of the KKR's balance sheet, joins Scarlet Fu and Tom Keene on "Bloomberg Money." They discuss private markets, asset allocation, 401K's and retirement security.

On September 16, 2026, KKR & Co Inc KKR shares fell 3.2% to $96.84, continuing a downward trend that has seen the stock decline 23.6% year-to-date and 32.4% over the past year. The stock has fluctuated between a 52-week high of $152.10 and a low of $82.67.

GF Value™ verdict: Current price of $96.84 is 28.0% below the GF Value™ estimate of $134.50. GF Score™ of 90/100 indicates a strong overall performance based on various financial metrics. Notable signal: Insider activity shows a net buying of $49.8M over the past 12 months, suggesting confidence in the company's future. Is KKR Overvalued or Undervalued? According to the GF Value™, KKR is currently undervalued, with a significant margin of safety at 28.0%. The GF Value™ is GuruFocus' proprietary intrinsic value estimate, calculated using historical trading multiples, past growth performance, and future earnings projections. This suggests that the current market price of $96.84 does not fully reflect the company's potential value based on these underlying fundamentals.

With the GF Valuation label indicating that KKR is modestly undervalued, there appears to be a robust opportunity for investors looking for value in the asset management sector. However, potential investors should remain cautious of market volatility, particularly given the recent downward price trends and the unpredictable nature of the economic environment.

How Does KKR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 30.9x 32.2x Forward P/E 13.2x N/A Currently, KKR's P/E ratio of 30.9x is slightly below its 5-year median of 32.2x, suggesting that the stock is trading at a lower valuation compared to its historical performance. This analysis aligns with the GF Value™ verdict of being undervalued, as the lower P/E ratio indicates that the stock may have room to appreciate towards its intrinsic value.

What Does KKR's GF Score™ Tell Us? The GF Score™ is a composite score that measures a company's financial strength, profitability, growth potential, valuation, and momentum. KKR has achieved a strong GF Score™ of 90/100, indicating it performs well across various financial metrics. Its strongest sub-rank is in Growth with a score of 10/10, while Financial Strength is its weakest area, rated at 4/10.

Metric Rating GF Score™ 90 Financial Strength 4/10 Profitability 8/10 Growth 10/10 Valuation 8/10 Momentum 7/10 These scores suggest that while KKR demonstrates strong growth and profitability potential, there are concerns regarding its financial strength. The high growth ranking indicates that the company is expected to expand, which may positively influence its valuation in the future.

What Are Gurus and Insiders Doing with KKR? Currently, 15 gurus hold KKR shares, with 6 adding to their positions while 10 have trimmed their holdings in recent quarters. This mixed activity suggests a cautious approach among institutional investors, with some recognizing the valuation opportunity while others are re-evaluating their investment strategies.

Insider activity has been quite positive, as insiders purchased $50.9M worth of shares over the past 12 months while only selling $1.1M, resulting in a substantial net buying of $49.8M. This trend of insider buying typically signals confidence in the company's direction and future performance, providing a strong indicator for potential investors.

What This Means for Investors Overall, KKR & Co Inc appears to be undervalued based on its GF Value™ assessment, offering a potential opportunity for investors looking for value in the asset management sector. Despite some concerns regarding financial strength and recent market volatility, the strong GF Score™ and positive insider activity provide additional context for consideration. For further details and ongoing updates, visit the KKR & Co Inc KKR stock page.

Frequently Asked Questions What is KKR's GF Score™?

KKR has a GF Score™ of 90/100, indicating a strong overall performance based on various financial metrics.

Is KKR overvalued or undervalued?

KKR is currently undervalued, with a GF Value™ of $134.50 compared to its market price of $96.84.

What is KKR's P/E ratio?

KKR's P/E ratio is 30.9x, which is slightly below its 5-year median P/E of 32.2x, suggesting a lower valuation compared to its historical performance.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

KKR & Co. Inc. (KKR) Barclays 24th Annual Global Financial Services Conference September 15, 2026 8:15 AM EDT

Company Participants

Christopher Sheldon - Partner, Co-Head of Credit & Markets

Conference Call Participants

Benjamin Budish - Barclays Bank PLC, Research Division

Presentation

Benjamin Budish
Barclays Bank PLC, Research Division

All right. Good morning, everyone. Welcome to day 2 of our 24th Global Financials Conference. I'm Ben Budish. I cover the U.S. brokers, asset managers and exchanges. And with us from KKR, we have Chris Sheldon, who's our Co-Head of Credit and Capital Markets. Chris, thanks so much for being here.

Christopher Sheldon
Partner, Co-Head of Credit & Markets

Yes. No, thanks for having me.

Benjamin Budish
Barclays Bank PLC, Research Division

I think you have some slides to run through.

Christopher Sheldon
Partner, Co-Head of Credit & Markets

Yes. What I thought I would do just sort of set the stage a little bit, give a brief overview of just our credit markets business, maybe talk a little bit about what we're seeing and some of the reflections over the last 12 months on some of the themes we're seeing across the business. Then I'll pivot a little bit into the markets in terms of tailwinds for credit and why we think those are going to persist even in some of the volatility. And then a little bit on how we're tackling it, and then we can go and you can pepper me some questions and we can move from there.

I did hear last year, there was a fire alarm during this session. So it was our competitor. So hopefully, it doesn't -- that competitor doesn't get back at us. But -- if I just do a quick snapshot, I say we're $300 billion across our credit business, 250 professionals global. You can see 12 cities, 10 countries. We think about the business in

Private equity firms Francisco Partners and KKR (KKR.N) have agreed terms to buy minority stakes in ‌Italian software company TeamSystem from its main investor Hellman & Friedman, three people familiar with the matter said.

H&F agreed to sell a stake of around 10% in TeamSystem to Francisco Partners, while a further roughly 5% stake was sold to other investors including KKR, the sources said.

The deal ​values TeamSystem, which provides accounting, payroll and business management software to companies and professionals, at between €8 billion and €10 ​billion ($9.27 billion to $11.59 billion), two of the people said.

The deal comes after a steep selloff in ⁠software stocks this year, partly driven by concerns about AI's impact on the sector. Those fears have weighed heavily on valuations ​and threatened to derail transactions across the industry.

Against that backdrop, the transaction is an encouraging sign for private equity firms ​with significant exposure to software assets in their portfolios.

The transaction allows H&F to cash in part of its investment while transferring its remaining stake to another fund managed by the private equity firm, two people and another separate source said. All the people spoke on condition ​of anonymity because the terms are private.

H&F, Francisco Partners, KKR and TeamSystem all declined to comment.

It also demonstrates the ability of ​H&F to reduce its stake in a major holding through a so-called private IPO process, enabling it to return capital to investors ‌at a ⁠time when sponsors have struggled to bring their largest portfolio companies to the public markets.

BET ON BUSINESS SOFTWARE
One of the people said TeamSystem products are closely integrated with government e-invoicing systems used by small and medium sized enterprises, making its products harder for AI-driven competitors to replicate.

H&F, which first invested in TeamSystem in 2016, held a 69% stake in the ​company as of July, according to ​a corporate filing. The ⁠same filing showed that Silver Lake and Abu Dhabi sovereign wealth fund ADIA, which acquired stakes in TeamSystem from H&F in 2023, owned 12.8% and 9.8%, respectively.

The Financial Times reported in ​July that the buyout firm was seeking a valuation of about €8 billion for the business.

That ​valuation implied a ⁠multiple of roughly 16.5 to 17 times TeamSystem's 2025 adjusted earnings before interest, taxes, depreciation and amortisation of €476 million.

TeamSystem currently generates more than €1.3 billion in revenue and about €600 million in core earnings, according to one of the sources. When H&F first invested ⁠in the ​company, it generated an EBITDA of €75 million, the person added.

Elsewhere in ​the industry, private equity firm Silver Lake announced this week that it will merge its two French software companies, Cegid and Silae, creating a group valued ​at more than €10 billion.

($1 = 0.8628 euros)

Key Takeaways Integer shareholders would receive $127 per share in cash if the $5.7 billion KKR acquisition closes.ITGR's deal requires majority shareholder approval plus antitrust and foreign investment clearances.Integer would become privately held and its shares would be delisted from the NYSE after closing. Integer Holdings Corporation (ITGR - Free Report) entered a definitive agreement on Aug. 2, 2026, to be acquired by affiliates of Kohlberg Kravis Roberts & Co. L.P. in a transaction carrying an enterprise value of $5.7 billion.

The deal has shifted investor focus to the proposed $127-per-share cash payment, closing conditions and the consequences of Integer becoming privately held. Operating trends still matter, but transaction execution is now the more immediate issue.

ITGR's Deal Establishes a Defined Cash ConsiderationUnder the merger agreement, each eligible Integer share outstanding immediately before closing would be converted into the right to receive $127 in cash, without interest. That creates a defined potential cash outcome for shareholders.

The consideration is not guaranteed until the transaction closes. Investors must therefore weigh the stated value against the possibility that closing conditions are delayed or not satisfied.

Integer's Buyout Still Faces Closing ConditionsCompletion requires approval and adoption of the merger agreement by holders of a majority of Integer’s outstanding shares. The transaction also requires applicable antitrust and foreign investment clearances, along with other customary conditions.

The acquisition is not subject to a financing condition. KKR’s affiliates have obtained equity and debt financing commitments, although regulatory, stockholder and other closing requirements remain.

ITGR's $307 Million Fee Adds Deal ProtectionThe agreement provides for a $307 million parent termination fee if Integer ends the deal in specified circumstances involving a buyer breach or failure to complete the transaction when required.

That provision gives Integer contractual protection if the buyer fails to perform under covered conditions. It does not remove completion risk because the merger still depends on required approvals and satisfaction of other terms.

Integer's Outlook Is Now Subordinate to the DealInteger withdrew its previously issued financial outlook after announcing the transaction and canceled its scheduled second-quarter earnings conference call and webcast. Merger progress has therefore become more immediate than management’s prior operating targets.

The business still faces pressure. Second-quarter sales fell 2.6% year over year to $464.1 million and gross margin contracted to 24.3% from 27.1%, reflecting weaker adoption of three new products and lower fixed-cost absorption.

Jabil Inc. (JBL - Free Report) provides advanced manufacturing solutions for medical devices, including cardiovascular and electrophysiology applications. Sanmina Corporation (SANM - Free Report) also designs and manufactures complex medical systems for original equipment manufacturers, underscoring the broader outsourced-manufacturing context.

Image Source: Zacks Investment Research

ITGR Would Exit the Public Market After ClosingIf completed, Integer would survive as a wholly owned subsidiary of the buyer. Its securities would be delisted from the NYSE as soon as practicable after the transaction becomes effective.

That change would end public trading in ITGR and convert the company into a privately held business. Eligible shareholders would receive the agreed cash consideration rather than continue participating in Integer as a listed company.

ITGR's Style Scores Add Context Ahead of ClosingThe bottom line is that the pending KKR transaction now dominates the near-term investment case. The $127 cash consideration offers a defined potential outcome, but shareholders remain exposed to closing risk until required conditions are satisfied.

ITGR currently carries a Zacks Rank #3 (Hold). It has a Value Score of C, a Growth Score of C, a Momentum Score of D and a VGM Score of C. Those readings do not provide strong factor support, particularly on momentum.

Zacks Style Scores complement the Zacks Rank. With a #3 ranking and mostly middle-range Style Scores, a measured stance fits the current setup while investors monitor transaction progress.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

KKR manages nearly $800 billion in assets, yet its next big bet is a Phoenix company that fixes broken garage doors. The logic behind a $2 billion valuation reveals something unsettling about where private equity is hunting for returns.

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There is something almost funny about a firm that manages $796.49 billion in assets writing a check for a company that fixes garage doors. Yet that is reportedly what has happened. KKR has agreed to buy A1 Garage Door Service at a valuation of roughly $2 billion, adding a Phoenix operator founded in 2007 that took growth capital from Cortec Group in 2022 to a home-services portfolio that already includes Neighborly and Groundworks.

KKR (NYSE:KKR | KKR Price Prediction) is doing what the largest alternative managers have been doing for a decade: buying the cash flows that public markets cannot access directly.

What KKR Is Actually Buying A1 is a rollup of local garage-door repair and installation shops. The appeal is the demand pattern. A broken garage door is not a purchase a homeowner postpones or comparison shops for three weeks. The thesis rests on non-deferrable demand, local pricing power, and a customer who is not shopping on price when the technician arrives.

KKR is scaling this playbook. It already owns Neighborly, whose franchise brands cover plumbing, electrical, pest control, and HVAC, and Groundworks in foundation repair. The category is fragmented, unglamorous, and too small for public markets to price efficiently.

The Roll-Up Mechanic In Plain English Private equity buys many small operators at low-single-digit multiples of earnings, consolidates back-office functions, and then sells the combined platform at a higher multiple. Multiple expansion does much of the work. It only works if the next buyer pays more, which is where the argument becomes uncomfortable.

The other constraint is labor. Technicians are the binding input, and their wages are rising faster than the cost of the trucks they drive. Centralized ownership of local service brands also has a mixed record on pricing before customers notice.

Why This Matters To KKR Shareholders KKR earns money through management fees and carried interest, so any single deal matters less than fundraising, deployment, and monetization. Q2 was its largest monetization quarter ever, with FRE of $1.21 billion, up 37% year over year, and $143 billion in dry powder. Co-CEO Joseph Bae said the firm delivered “record Fee-Related Earnings, Total Operating Earnings and Adjusted Net Income per share”.

The stock has not cooperated. KKR is down 15.79% year-to-date and 22.5% over the last year, even as consensus 2027 EPS is $7.39.

Is KKR Stock a Buy? Blackstone (NYSE:BX), with $1.35 trillion in AUM, is bigger and more capital-light. Apollo (NYSE:APO) at $1.05 trillion carries meaningful insurance balance-sheet exposure through Athene.

Ares Management (NYSE:ARES), the smallest at $671.3 billion, is the credit-heavy pure play. KKR sits between them, with a large Global Atlantic book and a growing strategic-holdings segment that management believes can reach $1.1 billion in operating earnings by 2030.

At roughly 14 times 2027 earnings, with fundraising running at a record and the shares down sharply, the setup looks like a Buy for patient holders. The franchise, not the garage doors, is the point of the deal.

Contact [email protected] for any questions or corrections.

Investment firm KKR & Co (KKR.N) has agreed to buy residential garage door repair and replacement company A1 Garage Door ​Service for around $2 billion, according to sources familiar ​with the matter.

The deal adds to a wave of ⁠home services M&A including Oak Hill Capital's $800 million-plus acquisition of ​Guild Garage Group this year. Private equity firms have been ​acquiring residential services companies because of their steady cash flows and high values in fragmented markets.

Phoenix, Arizona-based A1 Garage was founded in 2007 ​by CEO Tommy Mello, who grew the business into one ​of the largest residential garage door service providers in the country, operating ‌in ⁠around 20 states. In 2022, A1 received growth capital from the private equity firm Cortec Group.

KKR and Cortec declined to comment. A1 Garage could not be reached for comment.

KKR ​already has experience ​in the ⁠residential services space through its investments in Neighborly and Groundworks.

In 2021, it bought Neighborly, which ​it called the world’s largest provider and franchiser ​of ⁠home service brands including plumbing, pest control, restoration, electrical, cleaning, HVAC and home inspection. In 2023, it made a significant investment ⁠in ​Groundworks, which provides residential foundation and ​water management services. Cortec is also an investor in Groundworks.

Key Takeaways KKR's USI sale is expected to generate $3.3B in after-tax proceeds and $2B in adjusted net income.USI revenues nearly tripled under KKR, supported by organic growth and more than 90 acquisitions.The cash proceeds give KKR greater capacity to recycle capital into investment opportunities. KKR & Co. Inc.’s (KKR - Free Report) planned $17-billion sale of USI Insurance Services (“USI”) to Aon plc offers investors a clear example of how the alternative asset manager can turn long-held private investments into sizable realized gains. Beyond the headline transaction value, the deal highlights KKR’s ability to identify scalable businesses, compound their value over several years and ultimately recycle the proceeds into new opportunities.

KKR entered USI in 2017, when the insurance brokerage was valued at $4.3 billion. Since then, USI has transformed into a significantly larger platform. Revenues have nearly tripled, while more than 90 acquisitions have broadened its geographic reach and capabilities. The company now employs more than 10,500 people across nearly 200 offices. Adjusted revenues and EBITDA saw compound annual rates of approximately 12% and 13%, respectively, underscoring the combination of organic expansion and acquisition-led growth achieved under KKR’s ownership.

The financial payoff is substantial. KKR expects the transaction to generate $3.3 billion of after-tax proceeds and $2 billion of adjusted net income, equivalent to more than $2 per share. The sale represents roughly six times KKR’s original equity investment and 3.4 times the total balance-sheet capital invested over USI’s holding period. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.
The deal also provides an important read-through for KKR’s broader Strategic Holdings strategy. USI was KKR’s first core private-equity investment and became part of a portfolio designed to hold high-quality businesses for longer periods. Unlike traditional private-equity funds, where KKR primarily earns management fees and carried interest, Strategic Holdings allows the company to participate directly in the appreciation of investments through its own balance sheet.

The sizable cash proceeds enhance KKR’s ability to recycle capital into new investments and pursue opportunities with potentially higher prospective returns. This is particularly important for an alternative asset manager like KKR, as consistent realizations demonstrate that gains embedded in private investments can ultimately be converted into cash and earnings for shareholders.

Overall, the USI transaction strengthens the investment case for KKR by showcasing successful capital deployment, operational value creation and disciplined monetization. While the roughly $2-billion ANI contribution provides a meaningful near-term earnings boost, the bigger takeaway for investors is the repeatability of KKR’s model. Continued successful exits, alongside growth in fee-generating assets, could support earnings expansion and shareholder value over the long run.

Similar Steps Taken by Other Financial FirmsIn June, Deutsche Bank AG (DB - Free Report) entered a definitive agreement to sell its retail banking, affluent private banking and wealth management business in India to Kotak Mahindra Bank.

The divestiture aligns with DB's broader Global Hausbank strategy, announced in November 2025, which emphasizes simplifying operations, enabling disciplined capital allocation and concentrating investments in businesses with stronger scale and competitive advantages.

In July, Northern Trust Corporation (NTRS - Free Report) agreed to sell its guardianship services business to Wintrust Financial Corporation's subsidiary, Wintrust Private Trust Company.

The divestiture aligns with NTRS's broader strategy of strengthening its core wealth management, asset servicing and asset management businesses while streamlining its portfolio and focusing investments on areas with stronger long-term growth potential.

KKR’s Price Performance & Zacks RankThe company’s shares have gained 16.2% in the past three months compared with the industry’s 9.7% rise. 

Image Source: Zacks Investment Research

Currently, KKR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NEW YORK--(BUSINESS WIRE)--KKR & Co. Inc. (NYSE: KKR) today announced the signing of a definitive agreement with Aon plc under which Aon will acquire USI Insurance Services (“USI” or the “Company”), a leader in risk management, employee benefits and retirement consulting, for a total consideration of $17 billion from KKR and its co-investors.

USI, KKR’s first core private equity investment, is part of KKR’s Strategic Holdings portfolio. As a premier insurance brokerage and consulting firm with more than 10,500 team members operating out of nearly 200 offices throughout the United States, the Company delivers a broad range of technology-enabled property and casualty, employee benefits, personal risk and retirement solutions to large risk management clients, middle market companies, smaller firms and individuals.

KKR invested in USI in 2017 in partnership with clients, co-investors and USI's management and employees in a transaction that valued the Company at approximately $4.3 billion, and later increased its investment in 2020, 2023 and 2025. Over the course of KKR's ownership, in partnership with management and employees, USI nearly tripled its revenue through a combination of strong, consistent organic growth and more than 90 strategic acquisitions that expanded the Company's scale, geographic reach and capabilities.

Working in partnership with management, KKR supported a differentiated insurance broker hiring and development strategy that more than doubled the size of the USI team, as well as significant investments in proprietary technology, data and AI capabilities that strengthened client service and improved operational efficiency across the business. Over the course of KKR's ownership, USI’s Adjusted Revenues and Adjusted EBITDA grew at compounded annual growth rates of approximately 12% and 13%, respectively.

Joe Bae and Scott Nuttall, Co-Chief Executive Officers of KKR, said: “Thank you to everyone at USI who has been part of our journey. USI is a textbook case of partnership, patience and value creation that delivered an exceptional outcome for our shareholders and clients. This monetization milestone for Strategic Holdings also demonstrates that the compounding opportunity of this portfolio – with durable, growth oriented and recurring cash flows – is real.”

“We are enormously proud of everything the USI team has accomplished over the course of our partnership,” said Chris Harrington, Partner at KKR. “When we acquired USI, we saw a fantastic company that was uniquely positioned to help address the risk management, insurance and employee benefits-related needs of businesses across America. Working alongside Mike Sicard and the management team, we supported significant investments in USI’s people, platform and technology to grow a very good business into a stronger, more scaled and more innovative one. USI has continued to innovate and extend its leadership position, and we believe Aon is the ideal long-term partner to support the next chapter of its growth.”

“USI’s combination with Aon represents a transformative opportunity for the future,” said Mike Sicard, Chairman and CEO of USI. “We’ve had a great long-term partnership with KKR for nearly a decade —together we have invested in our team, our culture and our technology to build the USI platform into what it is today. We are excited to begin the next chapter with Aon and want to thank our partners at KKR for their tremendous support of USI.”

Strategic Holdings & Additional Information

Strategic Holdings represents KKR’s direct ownership in companies that KKR believes are durable and less cyclical and well positioned to compound value over the long term.

Under the agreement, Aon will acquire USI for $17 billion in an all-cash transaction. The implied equity value represents an approximately 6.0x return on the equity KKR invested in 2017, and a 3.4x return on the total KKR balance sheet capital invested over the life of KKR’s investment in USI.

Pro forma for the sale of USI, Strategic Holdings currently comprises ownership interests in 18 companies, representing KKR's share of approximately $3.5 billion in Adjusted Revenue and approximately $800 million in Adjusted EBITDA for the trailing twelve-month period ended March 31, 2026. Through KKR’s Strategic Holdings segment, KKR invests its own capital in portfolio companies through which KKR can earn investment returns in addition to earning fees and carried interest from third party capital.

Subject to closing, the transaction is expected to generate approximately $2.0 billion of ANI for KKR or $2.00 per share of ANI. A reconciliation of forecasted ANI and ANI per share to their corresponding GAAP measures has not been provided due to the unreasonable efforts it would take to provide such a reconciliation.

The transaction is expected to close in the fourth quarter of 2026 and is subject to customary closing conditions and regulatory approvals.

Goldman Sachs & Co. LLC, Insurance Advisory Partners LLC and Morgan Stanley & Co. LLC are serving as financial advisors to KKR and Simpson Thacher & Bartlett LLP is serving as legal advisor to KKR and USI.

KKR has posted additional information in a supplemental presentation available at the Investor Center at https://ir.kkr.com/events-presentations/.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About USI Insurance Services

USI is one of the largest insurance brokerage and consulting firms in the United States, delivering property and casualty, employee benefits, personal risk, program and retirement solutions to its clients nationwide. Headquartered in Valhalla, New York, USI connects more than 10,500 industry-leading professionals from nearly 200 offices to serve clients’ needs. USI has become a premier insurance brokerage and consulting firm by leveraging the USI ONE Advantage®, an interactive platform that integrates proprietary and innovative client solutions, networked local resources and enterprise-wide collaboration to deliver customized results with positive, bottom-line impact. For more information about USI, please visit www.usi.com.

Forward-Looking Statements

This press release contains certain forward-looking statements pertaining to KKR, which include statements with respect to investment funds, vehicles and accounts managed by KKR. You can identify these forward-looking statements by the use of words such as “opportunity,” “outlook,” “believe,” “think,” “expect,” “feel,” “potential,” “continue,” “may,” “should,” “seek,” “approximately,” “predict,” “intend,” “will,” “plan,” “estimate,” “anticipate,” “visibility,” “positioned,” “path to,” “conviction,” “enables,” the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters. Forward-looking statements relate to expectations, estimates, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts, including but, not limited to, any statements with respect to: statements with respect to the proposed sale of USI (the “Transaction”), including investment returns and after-tax proceeds from the Transaction and the Transaction’s effect on our business, including contributions to Adjusted Net Income (ANI) and ANI per share; statements regarding KKR’s business, financial condition, liquidity and results of operations; and the potential for future business growth, including the pace and level of monetization activity.

The Transaction is subject to closing conditions, and there can be no assurance as to whether or when the Transaction will be completed. Monetization activity is subject to market conditions and numerous other factors not in KKR's control, and there can be no guarantee that the pace of monetization activity will remain robust and is subject to material change, including deceleration.

These forward-looking statements are based on KKR’s beliefs, assumptions and expectations, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to KKR or are within its control. All forward-looking statements speak only as of the date of this press release. KKR does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as required by law.

Without limiting the statements made in the prior paragraphs, risks related to the proposed Transaction, including risks that we may not complete the Transaction or that the Transaction may not achieve its intended result, among others, could cause actual results to vary from the forward-looking statements.

Information about factors affecting KKR, including a description of risks that should be considered when making a decision to purchase or sell any securities of KKR, can be found in KKR & Co. Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 27, 2026, and its other filings with the SEC, which are available at www.sec.gov.

More News From KKR & Co. Inc.

Canadian energy company Enbridge (ENB.TO) said on Thursday it had agreed to ​form a joint venture with KKR (KKR.N) and Apollo to invest ‌about C$2.7 billion ($1.95 billion) in expansions of its Westcoast natural gas pipeline system in British Columbia.

Asset managers are increasingly investing in generation and pipeline assets as demand ​for natural gas infrastructure grows rapidly amid rising LNG ​exports and the proliferation of data centers.

Demand for natural gas ⁠infrastructure in Western Canada and the U.S. Pacific Northwest is ​also growing, with Enbridge's Westcoast system providing a route to international LNG ​markets.

Under the agreement, KKR and Apollo will fund the Aspen Point and Sunrise expansion projects, while Enbridge will receive C$700 million in cash at closing and ​retain majority ownership and operational control of the pipeline.

The Westcoast natural ​gas pipeline system stretches 2,900 kilometers (1,802 miles) from northeast British Columbia to the ‌Canada-U.S. ⁠border, with a current capacity of 3.6 billion cubic feet of natural gas per day (Bcf/d).

The Aspen expansion project is expected to add 535 million cubic feet per day (mmcf/d) of new transportation capacity after entering ​service in 2026.

Meanwhile, ​the Sunrise expansion ⁠project is expected to add 300 mmcf/d of natural gas capacity in B.C. and enter service ​in late 2028, following which, the total capacity of ​the Westcoast ⁠system will rise to 3.9 Bcf/d.

Both the expansion projects already have regulatory approval and are commercially underpinned by long-term take-or-pay contracts.

Enbridge said it has ⁠the ​option to repurchase the investors' interest in ​the joint venture at any time between the seventh and 14th year following close.

($1 = ​1.3883 Canadian dollars)

LOS ANGELES--(BUSINESS WIRE)---- $KKR--KKR Investors Have Opportunity to Join KKR & Co. Inc. Fraud Investigation with SBS Law.

TOKYO--(BUSINESS WIRE)--KKR, a leading global investment firm, L Catterton, the largest global consumer-focused investment firm, and Ci FLAVORS Co., Ltd. (“Ci FLAVORS” or the “Company”), a Japanese beauty and lifestyle brand platform, today announced the signing of definitive agreements under which funds managed by KKR will acquire Ci FLAVORS from all existing shareholders, including Ci FLAVORS founder Yusaku Horiuchi, L Catterton, eBeauty Group (“eBeauty”), and Yanagi Capital Partners (“Yanagi”). Yusaku Horiuchi and Representative Director and CEO Yoshiaki Okura will both be investing alongside KKR in the transaction.

With roots dating back to 2011, Ci FLAVORS has grown into one of Japan's leading beauty and lifestyle brand platforms, offering products across haircare, skincare, body care and lifestyle categories. Its portfolio includes brands such as &honey, 8 THE THALASSO, unlabel, THERATIS, and MOROCCAN BEAUTY. Its operations span brand sales, OEM manufacturing, D2C and e-commerce channels, directly managed department store retail, and global ingredient and materials procurement. The Company has an established presence in Japan’s haircare market, particularly in shampoo and hair treatment products, and has recorded growth in overseas sales, including in Asia and North America.

Eiji Yatagawa, Partner and Head of Japan Private Equity at KKR, said, "Ci FLAVORS has built a differentiated position in Japan's beauty market through its consumer-focused product development capabilities and diversified portfolio of brands. We look forward to working closely with the management team and leveraging KKR’s global network in the consumer sector, operational expertise, and investment experience to support the Company’s continued growth in Japan and further expansion across international markets."

Yoshiaki Okura, Representative Director and Chief Executive Officer of Ci FLAVORS, said, "I am very pleased to welcome KKR, one of the world’s leading investment firms, as our new shareholder. Ci FLAVORS has grown by respecting the individuality of each brand while striving to deliver new value to our consumers’ everyday lives. Our partnership with L Catterton, eBeauty, and Yanagi over recent years built on that strong foundation and corporate culture as we worked closely with them to broaden our product suite, deepen our market penetration, and strengthen our leadership team by leveraging their category expertise and industry network. We are grateful for their support and look forward to the next phase of transformation with KKR, which will help us further accelerate our growth initiatives, including through international and category expansion, strengthening our talent base and organizational capabilities, and strategic M&A. We remain committed to enhancing corporate value for all our stakeholders."

Taka Shimizu, a Managing Partner at L Catterton, said, "Our investment in Ci FLAVORS in 2022 was anchored in our conviction in its ability to solidify its leading position in Japan and expand overseas due to its innovation capabilities, stellar products, and dominance in key sales channels, as well as the robust fundamentals which underpin its target markets. The Company has achieved that through strategic planning and disciplined execution. It has been a privilege to work alongside Ci FLAVORS’ founder and management team on this journey, and we are confident that the Company is well positioned for further growth under KKR's ownership."

KKR is making this investment as part of its flagship Asia Pacific private equity strategy. This transaction builds on KKR’s deep experience investing in consumer businesses globally. Relevant investments include: Wella Company, a leading global professional and retail hair care and beauty company; Fresha, a leading platform for the beauty and wellness industry; Seiyu, a nationwide supermarket chain in Japan; V3 Group, an Asian lifestyle and wellness company that operates a portfolio of brands including TWG Tea and Bacha Coffee; and Vini Cosmetics, a leading personal care company founded in India.

Financial terms of the transaction were not disclosed.

About Ci FLAVORS

Ci FLAVORS has defined its purpose as “Illuminate Individuality, Brighten Lives, Shine the World.” To bring the joy of beauty to consumers around the globe, the Group develops products through its portfolio of unique brands that go beyond functionality, with a focus on design that enhances everyday life and ideas that create excitement with every use. By helping each consumer shine more brightly than the day before, Ci FLAVORS seeks to contribute to better lives and society and make the world a more cheerful place to be.

Ci FLAVORS Group Companies:

COSME COMPANY CO., LTD. https://cosmecompany.jp ViCRÉA, LTD. https://vicrea.jp Stella Seed Inc. https://stellaseed.jp JPSLAB CO., LTD. https://www.jps-labo.jp Dr.Once CO., LTD. https://dr-once.jp/company/ Bottle Works Inc. https://bottleworks.jp BEAUTE･DE･MODE CO., LTD. https://beaute-de-mode.jp MAISON BLOOM Co., Ltd. https://maison-bloom.jp ARCUS & co.,ltd. https://arcusand.jp Ecotone Co., Ltd. https://www.ectn.jp She style Co., Ltd. https://she-style.com Bridge Co., Ltd. https://bridge.tokyo Famm Co., Ltd. AHRES Inc. https://ahres.jp dr365 Co., Ltd. https://dr365.co.jp FAVE. Co., Ltd. https://www.fave.inc/ ANKER CREATE CO., LTD. https://ankercreate.com About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About L Catterton

L Catterton is the largest global consumer-focused investment firm managing approximately $40 billion of equity capital across multi-product platforms dedicated to private equity, credit, and real estate. The firm's funds have the ability to invest between $5 million and $5 billion, across the capital structure, in well-positioned consumer businesses. Leveraging deep category insight, operational excellence, and a broad network of strategic relationships, L Catterton's team of more than 200 investment and operating professionals across 18 offices partners with management teams to drive differentiated value creation across its portfolio. Founded in 1989, the firm has made over 300 investments in some of the world's most iconic consumer brands. For more information, please visit www.lcatterton.com.

Key Takeaways KKR's AUM reached $796B as of June 30, 2026, reflecting growth across credit, private equity & real assets.KKR is targeting $1T in AUM by 2030 through diversification, acquisitions and expanded distribution.KKR's AUM has seen an 18% CAGR, while management fees have witnessed a 25% CAGR since 2020. KKR & Co. Inc.’s (KKR - Free Report) expanding asset base underscores its evolution into a scaled and diversified global investment platform. With assets under management (“AUM”) of $796 billion as of June 30, 2026, the company has already covered a substantial portion of the distance toward its $1-trillion AUM target by 2030. The breadth of its asset mix, along with acquisitions and expanding distribution capabilities, could help KKR sustain the momentum required to reach that milestone.

KKR’s AUM spans Credit & Liquid Strategies, Private Equity, and Real Assets, reducing its dependence on traditional private equity for growth. Exposure to infrastructure, real estate, private credit, asset-based finance and insurance-linked investments provides multiple avenues to raise and deploy capital across market cycles. This diversification also supports a broader and more recurring management-fee base.

The company’s long-term growth record reinforces the case for further expansion. Per its August 2026 Investor Presentation, KKR’s AUM saw a compound annual growth rate (“CAGR”) of 18% from 2010 through the second quarter of 2026. More importantly, management fees witnessed a 25% CAGR from 2020 through the second quarter of 2026, indicating that the increase in scale is translating into stronger recurring earnings power.

Asset Under Management 

Image Source: KKR & Co. Inc.

Strategic acquisitions are also helping KKR move closer to the $1-trillion mark. In May 2026, the company completed its acquisition of Arctos Partners, which enhanced KKR’s sourcing and origination capabilities across private equity, credit, real assets, insurance and capital markets. In July 2025, KKR completed the acquisition of a majority stake in HealthCare Royalty Partners, a middle-market biopharma royalty acquisition company, adding nearly $3 billion to its AUM.

Nonetheless, the path to $1 trillion may not be completely smooth. Concerns surrounding private credit, weaker investor sentiment and rising redemptions across parts of the sector could moderately restrain near-term fundraising and AUM growth. Such pressures could become more meaningful if credit conditions deteriorate or institutional investors turn more cautious toward alternative assets.

Even so, KKR’s diversified AUM base, recurring fee streams, acquisition strategy and broader distribution network provide several levers for long-term expansion. With AUM already approaching $800 billion and earnings projections calling for 29.4% growth over the next three to five years, well above the industry average of 8.3%, the company appears well-positioned to make further progress toward its $1-trillion target by 2030.

AUM Performance of KKR’s PeersApollo Global Management’s ((APO - Free Report) ) AUM witnessed a CAGR of 19.6% over the past three years (2022-2025), with the rising trend continuing in the first half of 2026. The increase in Apollo’s AUM is primarily driven by growth in its retirement services client assets, subscriptions across the platform and new financing facilities.

The acquisition of Bridge Investment Group Holding nearly doubled Apollo Global Management’s real estate AUM to more than $110 billion. By 2029, Apollo Global Management expects the total AUM to reach $1.5 trillion by scaling its private equity business.

Similarly, Blackstone Inc. (BX - Free Report) has been witnessing a rise in its AUM balance. Over the past five years (2020-2025), Blackstone's total AUM and fee-earning AUM have recorded a CAGR of 15.6% and 14.4%, respectively. The rising trend continued for both in the first half of 2026.

Blackstone’s robust AUM base supports long-term earnings growth by providing a larger pool of fee-generating capital across its private equity, real estate, credit and infrastructure platforms.

KKR’s Price Performance & Zacks RankThe company’s shares have gained 16.6% in the past three months compared with the industry’s 8.6% rise.

Price Performance

Image Source: Zacks Investment Research

Currently, KKR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investment will accelerate the company’s live entertainment ambitions and build on its pioneering role in bringing global artists and marquee productions to Indian audiences.

MUMBAI, India--(BUSINESS WIRE)--KKR, a leading global investment firm, and BookMyShow (the ‘Company’), one of India’s leading entertainment destinations, today announced the signing of definitive agreements under which funds managed by KKR will acquire a minority stake in the Company. KKR’s investment will support BookMyShow’s next phase of growth as it scales its live entertainment business and deepens its full-stack offering across India.

Established in 2007, BookMyShow has evolved from a ticketing platform into a full-stack entertainment company, combining technology, consumer reach and deep industry capabilities across movies, live entertainment and experiences. A key part of this evolution has been BookMyShow Live, the Company’s live entertainment experiences division, which operates across the value chain - from talent and IP acquisition to production, promotion, partnerships, and audience development. Through sustained investment in the ecosystem, BookMyShow Live has built the capabilities and scale to bring increasingly ambitious entertainment experiences to India, while contributing to the development of a more robust and commercially viable live entertainment market.

KKR’s investment reflects its conviction in India’s entertainment sector and in BookMyShow’s ability to drive its next phase of growth, powered by rising discretionary spending, a large and young consumer base, and growing demand for world-class live experiences. With expansive consumer reach, technology and entertainment capabilities, the Company is positioned to continue its growth in a fast-maturing market.

Akshay Tanna, Partner and Head of India Private Equity at KKR, said, “BookMyShow has been a pioneer in delivering high-quality entertainment experiences in India. We are pleased to support BookMyShow as it continues to lead the next phase of growth in India’s out-of-home entertainment sector. We believe BookMyShow will play an important role in advancing India’s ambition to become a global entertainment hub and a premier destination for leading artists and acts from around the world. We look forward to combining our deep local knowledge with our global investment experience and network to support BookMyShow in its next stage of transformation and further elevate the world-class experiences it delivers to audiences across India.”

Ashish Hemrajani, Founder & CEO, BookMyShow, said, “We are delighted to welcome KKR as an investor in BookMyShow. Their global perspective, deep expertise and strong understanding of consumer businesses will be invaluable as we enter the next phase of our journey. The timing of this investment is particularly exciting, as we have significantly expanded our presence across the live entertainment landscape and are seeing the opportunity for India’s entertainment economy grow like never before. We are also grateful to our longstanding investors Network18 (part of Reliance Industries Limited), Accel Partners, Elevation Capital, Stripes Group, and TPG for their continued support.”

The transaction marks KKR’s latest private equity investment in India, where KKR has made investments across a range of industries and sectors including Medicover India, a multi-speciality hospital; Lighthouse Learning, a leading Indian education services provider; Vini Cosmetics, a leading personal care and beauty products company; Healthcare Global Enterprises, a leading oncology hospital chain; Darwinbox, a leading HR technology platform; Rebel Foods, an internet restaurant company. BookMyShow adds to KKR’s global portfolio of Media and Entertainment investments, including Internet Brands; ByteDance; Chord Music Partners; Epic Games; PlayOnSports; OverDrive; Superstruct; and Simon & Schuster.

The transaction is subject to customary regulatory approvals. Additional details of the transaction are not disclosed.

Avendus Capital served as the exclusive financial advisor for BookMyShow, while Trilegal acted as legal advisor.

****

About BookMyShow

Launched in 2007, BookMyShow, owned and operated by Bigtree Entertainment Pvt. Ltd. (founded in 1999), is one of India's leading entertainment destinations with global operations and the one-stop shop for every entertainment need. The firm is present in over 700 towns and cities in India and works with partners across the industry to provide unmatched entertainment experiences to millions of customers. Over the years, the company has evolved from a purely online ticketing platform for movies across 7,000 plus screens, to end-to-end management of live entertainment events including music concerts, live performances, theatricals, sports and more, all accomplished at par with global standards. Some of the key properties that BookMyShow Live, the live entertainment experiential division of BookMyShow, has brought to its markets over the past few years include Lollapalooza India, U2’s The Joshua Tree Tour, NBA’s debut games in India, Disney’s Aladdin, Cirque du Soleil BAZZAR as also international artists such as Coldplay, Ed Sheeran, Travis Scott, Linkin’ Park, John Mayer, Guns N’ Roses, Post Malone, Def Leppard, Justin Bieber to name a few.

BookMyShow is invested in providing the best user experience, whether on-ground or online and to that effect, launched BookMyShow Stream, India’s largest home-grown transactional video-on-demand (TVOD) platform hosting award-winning and critically acclaimed content from around the world, complementing its cinemas business. BookMyShow also houses India’s most extensive organic reviews and ratings engine for movies and has driven technology innovations, such as the M-ticket and Movie Mode, impacting tens of millions of users and the industry at large. With continued support from marquee investors like TPG Growth, Stripes Group, Elevation Capital (formerly SAIF Partners), Accel and Network18 (part of Reliance Industries Limited), and now KKR, BookMyShow has constantly demonstrated category leadership, growing beyond India with operations in Singapore, Indonesia, Malaysia, UAE and Sri Lanka. BookMyShow is also committed to society at large, by way of BookAChange and BookMyShow Foundation, which support special causes to enrich the lives of the less fortunate across India through entertainment-led experiences.

Website | Press Office | Facebook | Twitter | LinkedIn | Instagram

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

Shares of UGI Corp (NYSE:UGI) rallied Tuesday afternoon following a Wall Street Journal report detailing a takeover bid.

UGI shares are climbing with conviction. What’s fueling UGI momentum? WSJ Reports Unsolicited Acquisition ProposalPrivate equity giant KKR & Co Inc (NYSE:KKR) submitted an unsolicited proposal to acquire the natural gas and electricity distributor for roughly $9 billion, according to people familiar with the matter, cited by the Wall Street Journal.

The buyout offer values UGI at $42.50 per share. This price tag represents a premium of over 20% compared to the stock’s Monday closing price of $35.09.

The Wall Street Journal highlighted that there are no guarantees UGI will accept the terms or that a final transaction will materialize. Private equity appetite for utility infrastructure has expanded rapidly, driven by rising power demand from data centers and energy grid needs.

UGI Shares Surge Tuesday AfternoonUGI Price Action: UGI shares closed higher by 9.40% at $38.39 at the time of publication on Tuesday, according to Benzinga Pro data.

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Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tab

CompaniesAug 18 (Reuters) - Private equity ​firm KKR (KKR.N), opens new tab has offered to ‌buy U.S. natural gas and electricity distributor UGI Corp (UGI.N), opens new tab for $9 billion, ​the Wall Street Journal reported ​on Tuesday, citing people familiar ⁠with the matter.

The offer values ​UGI at $42.50 per share, the ​report said. This represents a premium of 21.1% to UGI's closing price on ​Monday, according to Reuters ​calculations.

Sign up here.

Shares of UGI jumped more than 12% ‌in ⁠early trading, while KKR's stock was down roughly 1%.

A surge in electricity demand from AI ​data centers ​and ⁠other large power users is reshaping the U.S. ​energy market, putting reliable sources ​such ⁠as natural gas in greater focus.

KKR and UGI did ⁠not ​immediately respond to ​Reuters requests for comment.

Reporting by Katha Kalia ​in Bengaluru; Editing by Tasim Zahid

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Wall Street has spent the past two years pouring money into anything with “AI” stamped on the label, and the bill for that enthusiasm keeps climbing. Data center buildout costs are now measured in the hundreds of billions annually, and hyperscalers have leaned on their own balance sheets to keep pace. That approach has limits. 

Even Microsoft (NASDAQ:MSFT | MSFT Price Prediction), Meta Platforms (NASDAQ:META), and Amazon (NASDAQ:AMZN) can’t fund a global compute buildout entirely with free cash flow, which is why the financing structures underneath AI infrastructure have started shifting toward the same institutional capital that built America’s highways and power grids.

Nvidia (NASDAQ:NVDA) just gave that shift its biggest push yet. Yesterday, the company announced memoranda of understanding with Apollo (NYSE:APO), BlackRock (NYSE:BLK), Blackstone (NYSE:BX), Brookfield (NYSE:BN), Goldman Sachs (NYSE:GS), and KKR (NYSE:KKR) to mobilize over $500 billion in third-party capital for AI infrastructure. It’s a landmark deal. It’s also one investors should read closely before assuming it de-risks the AI trade.

A New Asset Class, Old Vendor-Financing Habits Huang’s pitch is that Nvidia compute has become an investable asset class, comparable to real estate, toll roads, or power grids — infrastructure institutional capital is familiar with underwriting. The new “compute financing platforms” are designed to fund data centers and chip deployments for Nvidia’s customers, including frontier AI labs, enterprises, and cloud providers, at what the company calls attractive rates.

The detail that matters most is Nvidia retains the option to backstop up to roughly 25% of the financing, or about $125 billion. That’s not a passive bystander role. The stock declined about 3% following the announcement, a signal that the market isn’t fully buying the “independent underwriting” framing.

That skepticism has merit. Capital raised through these platforms flows toward customers acquiring more Nvidia hardware, which means Nvidia benefits twice — once through chip and software sales, and again through deeper CUDA ecosystem lock-in. The company has already faced scrutiny over equity stakes and guarantees extended to major buyers, including prior data-center financing arrangements. Layering a $125 billion backstop on top of that pattern creates correlated exposure: if the underlying AI projects underperform, Nvidia risks losing both the demand and the capital it pledged to protect.

Nvidia is betting $500 billion on hardware that becomes obsolete in five years. Discover why this massive structural mismatch has Wall Street flashing a warning sign. © 24/7 Wall St. Why GPUs Aren’t Toll Roads The comparison to real estate and power grids sounds reassuring until you check the depreciation schedules. Toll roads generate revenue for decades. Power plants run for 30-plus years. GPUs don’t get that luxury.

Asset Type Typical Useful Economic Life Financing Tenor Fit Toll roads / power grids 30–50+ years Long-duration debt, well-matched Commercial real estate 30–40 years Long-duration debt, well-matched Data center GPUs (Nvidia-class) 3–5 years before meaningful obsolescence Mismatched against infrastructure-style tenors Each new architecture generation — Nvidia has cycled through Hopper, Blackwell, and now Rubin in a matter of years — compresses the resale and collateral value of the prior fleet. Infrastructure lenders typically underwrite against decades of predictable cash flow. GPUs offer a fraction of that runway. If AI utilization or pricing power softens, collateral values erode fast, leaving lenders — and Nvidia, through its backstop — exposed to losses that a toll road never generates.

Significant Uncertainty Remains Granted, these are MOUs, not signed, funded deals. The $500 billion figure is a multiyear target, not committed capital sitting in an account today. Execution risk is also real: permitting, power availability, and the pace at which these six firms — with a combined balance sheet north of $3 trillion in assets under management between Blackstone, Brookfield, Apollo, and KKR alone — actually deploy capital will determine whether this reshapes AI financing or just headlines a press release.

The broader concern is amplification. Much of the AI ecosystem’s end demand isn’t yet generating cash flow that matches the capital being committed. Stacking leverage onto that gap doesn’t create revenue; it just raises the stakes if growth disappoints.

Key Takeaway In short, Nvidia’s $500 billion consortium is a genuine vote of confidence from six of the world’s largest capital allocators, and it does reduce Nvidia’s own balance-sheet burden. But the vendor-financing dynamic and the mismatch between GPU depreciation and infrastructure-style lending are real structural risks, not just headline skepticism. 

Investors should treat this as a demand signal worth watching, not proof that AI compute has become as safe as a toll road. Keep an eye on utilization rates and how much of that $125 billion backstop Nvidia actually has to use — that number will tell you more than the $500 billion headline ever will.

Contact [email protected] for any questions or corrections.

Bonnie Stewart, a longtime ISC employee, shortly after finding out about her payout. KKR In his 12 years on the job, Justin Berk, a 44-year-old product manager at an insurance-tech company, had seen his employer get bought and sold twice. All he had received in return was a "pat on the back" at a company meeting.

"A pat on the back is nice, but it doesn't pay the bills," he said.

When KKR sold his company, Integrated Specialty Coverages, to Onex Partners, the company meeting was much more significant: Berk received 30 months of his salary as a cash bonus as part of a KKR initiative to share its private equity profits with workers at its portfolio companies.

Berk and other long-tenured employees, like Bonnie Stewart, the director of operations for ISC subsidiary Gaslamp Insurance Services, received 30 months of their salaries. The payouts were announced at a September 18 meeting in San Diego's iconic Hotel Del Coronado, following a Champagne toast in celebration of the sale, in which KKR said it delivered a 2.5 return.

Stewart said that if she could "bottle up the feeling" of receiving that windfall, she "wouldn't sell it." The change in mindset that came with the program, starting at the foundational level of renaming "employees" as "owners," and the hard work that led to the profitable sale, were worth even more.

"I don't think Travis Kelce would sell the feeling of winning a Super Bowl," Stewart said. "He earned that. His team earned that."

ISC employees celebrate their payout at the Hotel Del Coronado.  KKR In total, KKR paid nearly 400 ISC employees between 3 and 30 months of their salary after closing the sale. Payouts were based on when workers joined the company, and ranged from a minimum of $10,000 to a maximum payout of more than $413,000. The average payout for workers who joined in 2025 was $24,500.

It is part of a KKR initiative that's helped profit-sharing gain steam across the industry. KKR has exited 15 of the 91 companies it has programs with, delivering $2 billion to more than 40,000 employees.

These employees don't receive actual shares when KKR buys a company; instead, a portion of the company's equity is earmarked for them. Their potential payout, just like KKR's, is based on the return it gets on that initial investment.

We spoke to three ISC employees, who told us that the money was life-changing, allowing two to save up for a down payment in a pricey Southern California housing market.

Justin Berk and his wife went on vacation in Laguna Beach shortly after his big payday.  Justin Berk Berk took his two daughters, 12 and 10, to Maui, Hawaii, for the first time last year, a vacation that wasn't possible before. He's also no longer wincing at fees for club sports.

"It's easier now to say yes to more meaningful family choices," Berk said.

The cashPayouts were made when the deal closed on November 24 of last year, and were based on the employee's current salary and tenure at the company.

Stewart, who started at the company 19 years ago, was among the employees who received the highest monthly payout. She has two younger kids and said the money is "very impactful" on her family, allowing her to think about creating wealth for her children. It's expensive to live in Southern California, and it can be hard to save.

"It gave us that new opportunity to look at investments that we might not necessarily know of before," Stewart said. KKR provided free financial advisors to employee owners as part of the deal. Stewart and her colleagues even asked executives how they managed their money to learn how to handle their coming windfall.

Year they joined ISCPayout2025Greater of 3 months or $10,0002024Greater of 6 months or $25,0002023Greater of 9 months or $35,0002022Greater of 12 months or $45,000Sept 2015 - 2021Greater of 15 months or $70,000Before September 2015 (More than 10 years of tenure)Greater of 30 months or $115,000Trevor Sybert, a 49-year-old underwriter who joined the company in 2020, had scheduled a work trip to South Carolina, so he watched the meeting over Zoom in an airport alongside another executive. He was "bummed" to miss the event live, but most importantly, he was going to get 15 months' pay.

Right now, he said, the money is sitting in a high-yield savings account, but he plans to use it as a down payment on a condo, as he and his wife divorced and sold their house.

Trevor Sybert is saving up for a down payment on a condo.  Trevor Sybert He's feeling real "financial freedom," he said, and plans to be conservative with his spending. Sybert said his financial advisor also helped him set up his financial future following his divorce. The first step was growing the size of his emergency fund.

For Berk, the money means that he can do more things with his family. But most importantly, it means that his family can have a home of their own.

"Saving up for a down payment out here is almost impossible unless you're an executive at a company," Berk said. "Now, I have a nice cushion that will become a down payment on a house."

The changeWhen KKR bought the company in 2021, Sybert instantly saw the appeal of the ownership program: "We are going to make some money if the business does well," he said.

Sybert said he learned more about business than ever before — "This is the first time I've ever heard of EBITDA," he said — attending quarterly owners' meetings that got deep into the details on ISC's performance.

KKR has built and iterated on an in-house playbook for these investments, which it has now helped export to other industry leaders, such as Apollo, through the nonprofit Ownership Works. Blackstone, which is not part of the initiative but has made its own employee-ownership pledge, recently took a company with an employee-ownership plan, Jersey Mike's, public for the first time.

At the beginning, the workers, redubbed "owners" as part of KKR's initiative, were given a crash course in valuation, the company's business plan, and how it gets its revenue. Each quarter, company leaders would walk through the company's projected valuation and give a performance scorecard.

Information became increasingly transparent throughout the process, said Berk, with many employees gaining direct access to business intelligence dashboards to understand the gritty details of the business.

But it's the behavior that information fostered that really made the difference.

"When you own a piece of it, you're not just clocking out and saying, 'Well, I'm done for the day,'" Berk said. "You might stick around a little later, do a little extra, make that extra trip to the broker. You're owed a little piece of the pie, so you're going to take better care of it."

It also meant that employees who weren't willing to adopt the mindset left over time, Berk said, while the rest stayed. He said his team had only lost one member in three years.

The company created the Bright Ideas club, a place for workers to pitch potential big-picture changes at the company, as well as a Founders Club, which highlighted the top five employee-owners each year.

ISC employees celebrate their payouts at the iconic Hotel Del Coronado.  ISC For Stewart, who had started as a receptionist before rising to her current role managing roughly 20 employees, the switch from employer to "owner" was natural. She said she noticed a change in how her team would come in with new ideas to solve problems. Her fellow owners were "thinking outside of the box," she said.

"In retrospect, we grew a lot, and for the best," she said.

Over the years, it also became apparent that the company was edging closer to a sale, with metrics improving at each quarterly meeting.

Stewart found out about an event invite two days before the event. All signs pointed to good news, but "I did not want to say it out loud," Stewart said. But as she saw balloons lining the entrance way and cameras and light set-ups, she could sigh a deep breath.

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Alex Nicoll You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Alex is a reporter at Business Insider writing about private equity, alternative asset management, and the impact of these growing sectors on the wider world.Previously, he covered real estate and real estate technology for Business Insider. Some previous highlights include his coverage of the real reason Zillow Offers closed, remote work surveillance at a real estate data giant  and a real estate's scion new cryptocurrency that's backed by gold he says is buried near Las Vegas.Before joining Business Insider in 2019, he worked for Bridgewater Associates and Peloton. He is also the secretary of the Insider Union.He welcomes any and all reachouts, prioritizes his source's safety, and has a long record of working with confidential sources to tell deeply reported, complicated stories.Get in touch! Contact this reporter via encrypted messaging app Signal at @alexnicoll.01 using a non-work phone, email at [email protected] or [email protected], or Twitter DM at @nicollsanddimes. (PR pitches by email only, please.)

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