KKR & Co. is poised to achieve a $3.3 billion windfall from the sale of USI Insurance Services to Aon Plc for $17 billion. This transaction represents a notable exit for KKR's Strategic Holdings unit, which focuses on long-term private equity investments. The deal is expected to generate approximately $2 billion in adjusted net income for the private equity firm. USI, the tenth-largest U.S. insurance brokerage, is held within KKR's Strategic Holdings, a "mini Berkshire" established in 2023 for dividend-paying assets.
This sale is the latest in a series of exits for New York-based KKR, which recently reported a record quarterly profit driven by $1.29 billion in asset sales, including Kokusai Electric Corp. and HD Hyundai Marine Solution. KKR initially backed USI in 2017 with a $4.3 billion valuation and made three subsequent investments. The sale is projected to yield a 3.4 times return on KKR's invested balance-sheet capital.
The transaction is anticipated to significantly boost KKR's 2026 adjusted net income, placing it well ahead of its previous goal of $7 per share, which managers did not expect to achieve this year. USI offers a range of services, including property and casualty insurance, employee benefits, and personal risk and retirement products, employing over 10,500 team members across nearly 200 U.S. offices. The deal is expected to close in the fourth quarter of 2026.
