Willkie, Simpson Thacher Advise KKR on $4 Billion Insurer Deal

Willkie Farr & Gallagher and Simpson Thacher & Bartlett advised KKR & Co. on its agreement to buy insurer Global Atlantic Financial Group in a deal that would more than double the alternative-investment manager’s position in the $30 trillion insurance market, according to the firms.

The transaction is expected to close in early 2021 and could be worth more than $4 billion.

Global Atlantic had more than 2 million policyholders through its retirement and life insurance products and almost $70 billion in invested assets as of March 31. The company, which was founded as part of the Goldman Sachs Group Inc. in 2004 and became independent nine years later, will continue to operate as a separate business with its existing brands and management team after the deal closes.

KKR’s existing insurance business includes managing $26 billion in assets. The deal would increase its overall assets under management to $279 billion from $207 billion, and boost permanent capital’s share of those assets by 24 percentage points, to 33%, according to the company.

Willkie’s team for KKR was led by partners Allison Tam and Robert Rachofsky, and Simpson Thacher’s team was led by partners Katie Sudol and Marni Lerner, the law firms said via email.

Debevoise & Plimpton represented Global Atlantic in the transaction, led by partners David Grosgold and Nicholas Potter.