Simpson Thacher is representing KKR Co. & Inc. in its proposed acquisition of Global Atlantic Financial Group Limited (“Global Atlantic”), a leading retirement and life insurance company. The investment in Global Atlantic will be held on KKR’s balance sheet and through a proprietary vehicle established for others to invest alongside KKR’s balance sheet, not in any client funds. Under the terms of the agreement, KKR will pay Global Atlantic shareholders an amount equal to 1x Global Atlantic’s GAAP Shareholders’ Equity, excluding Accumulated Other Comprehensive Income (AOCI) (“Book Value”), subject to an equity roll-over for certain existing shareholders. As of March 31, 2020, Global Atlantic’s Book Value was approximately $4.4 billion. The transaction, which is expected to close in early 2021, is subject to required regulatory approvals and certain other customary closing conditions.
Global Atlantic serves more than two million policyholders through its retirement and life insurance products. It is one of the largest fixed rate and fixed indexed annuity providers in the United States, offering annuities for individuals through a network of banks, broker-dealers, and insurance agencies as well as life insurance for individuals and corporates. Global Atlantic is also a leader in the institutional channel, providing customized reinsurance solutions to its life and annuity company clients.
The Simpson Thacher team includes Katie Sudol, Marni Lerner, Jihyun Chung, Nina Bakhtina, Jiarui Li, Albi Kocibelli, Molly Nelson and Katie McMahon (M&A); Tristan Brown, Eric Wolf and Emily Manns (Executive Compensation and Employee Benefits); Marcy Geller, Drew Purcell, Joseph Tootle and Edward Grais (Tax); Jason Herman, Ben Smith, David Park, Sam Francis and Sheena Shah (Funds); Joe Kaufman, Jen Nadborny and Jason Kitchen (Capital Markets); Steve DeLott (Insurance); David Blass, Meredith Abrams and Anna-Kay Richards (Broker-Dealer); Rajib Chanda, Ryan Brizek and Patrick Quinn (Investment Adviser); Krista McManus and Tim Gallagher (Real Estate); Genevieve Dorment and Bobbie Burrows (Intellectual Property); Vanessa Burrows (Healthcare); Peter Guryan and Kelly Karapetyan (Antitrust); and Adeeb Fadil (Environmental).