US real estate

KKR completes the acquisition of the Japanese leader in real estate asset management

Asset manager enters new phase of growth under new name, KJR Management

Strategic Transaction Strengthens KKR’s Commitment to Japan and Brings Global Real Estate Assets Under Management to US$54 Billion

NEW YORK & TOKYO, April 28, 2022–(BUSINESS WIRE)–KKR & Co. Inc. (together with its subsidiaries, “KKR”) today announced the closing of the previously announced transaction whereby KKR purchased all of the shares of Mitsubishi Corp.-UBS Realty Inc. (“MC-UBSR”), a leading Japanese real estate asset manager.

KKR has completed the acquisition of all outstanding shares of MC-UBSR from Mitsubishi Corporation and UBS Asset Management. Going forward, the asset manager, previously known as MC-UBSR, will operate as “KJR Management” (“KJRM”), effective immediately.

In addition, KKR completed the acquisition of the shares of the two funds managed by KJRM, Japan Metropolitan Fund Investment Corporation (“JMF”) and Industrial & Infrastructure Fund Investment Corporation (“IIF”) previously held by Mitsubishi Corporation (collectively, with the purchase of all shares of MC-UBSR, the “Acquisition”). JMF and IIF will continue their existing strategies under their current names. The two Japanese REITs will be managed and supported by the approximately 160 professionals who are expected to continue working at KJRM in the existing roles they held at MC-UBSR.

Katsuji Okamoto, President of KJRM, and Naoki Suzuki, President of KJRM, said, “We are excited to embark on the next phase of KJRM’s growth as part of KKR. While our core operations and investment process for JMF and IIF will remain unchanged, we believe KJRM will be able to leverage each other’s complementary skills and relationships to deliver strong results to unitholders of our REITs. and meet the investment needs of our clients. »

Hiro Hirano, CEO of KKR Japan and Co-Head of Asia-Pacific Private Equity at KKR, said, “We are delighted to welcome this world-class team to KKR. They have built a leading asset management platform in the Japanese REIT market, and we look forward to supporting their growth and success over the long term.”

The transaction provides KKR’s global real estate business with immediate scale in a large and important market. With the completion of the transaction, assets under management for KKR’s global real estate platform increase to approximately US$54 billion.1

About KKR

KKR is a leading global investment firm providing alternative asset management solutions as well as capital markets and insurance solutions. KKR aims to generate attractive returns on investment by following a patient and disciplined investment approach, employing world-class people and supporting the growth of 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 pension, life insurance 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 more information about KKR & Co. Inc. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About KJRM

KJR Management (“KJRM”) is one of the largest real estate asset managers in Japan, with 1.7 trillion yen in assets under management. KJRM is considered a pioneer in the Japanese real estate investment trust (“J-REIT”) industry and today manages two REITs listed on the Tokyo Stock Exchange, Japan Metropolitan Fund Investment Corporation (“JMF”) and Industrial & Infrastructure Fund Investment Corporation (“IIF”). JMF, with approximately 1.2 trillion yen in assets under management as of February 28, 2022, invests in retail, office, hotel and other assets located in urban areas. IIF, with approximately 0.4 trillion yen in assets under management as of January 31, 2022, focuses on industrial and infrastructure properties in Japan.

Forward-looking statements

This press release contains certain forward-looking statements. You can identify these forward-looking statements by using words such as “outlook”, “believe”, “believe”, “expect”, “potential”, “continue”, “may”, “should”, “seek, “approximately”, “predict”, “intend”, “shall”, “plan”, “estimate”, “anticipate”, the negative version of these words, other comparable words or other statements which do not not relate strictly to historical events or factual matters. Forward-looking statements relate to expectations, estimates, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions regarding matters that are not historical facts, including, but not limited to, statements regarding acquisition; KJRM operation following the closing of the transaction; and the expansion and growth opportunities and other synergies resulting from the acquisition. 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 may change as a result of many possible events or factors, not all of which are known to KKR or under its control. If a change occurs, KKR’s business, financial condition, liquidity and results of operations may differ materially from those expressed in the forward-looking statements. The following factors, among others, could cause actual results to differ from the forward-looking statements: the inability to realize the anticipated benefits within the timeframe anticipated from the acquisition; unforeseen liabilities or integration costs and other costs of the acquisition and the timing thereof; changes in KJRM’s business; retention of key KJRM employees; KJRM’s ability to maintain business relationships after the acquisition; the severity and duration of the COVID-19 pandemic; the impact of the pandemic on the US, Japanese and global economies; international, U.S. federal, state and local government responses to the pandemic; failure to realize benefits or changes in KKR’s or KJRM’s business strategies, including the ability to realize anticipated synergies from acquisitions, strategic partnerships or other transactions; the availability, terms and deployment of capital; the availability of qualified personnel and the costs of recruiting and retaining such personnel; changes in the asset management or insurance industry, interest rates, credit spreads, exchange rates or the general economy; underperformance of KKR’s or KJRM’s investments and reduced ability to raise funds; volatility in capital markets; KKR’s compliance with laws applicable to its business; the use of estimates and risk management in KKR’s business; the outcome of KKR’s litigation and regulatory matters; and the degree and nature of competition from KKR.

These statements are subject to numerous risks, uncertainties and assumptions, including those described in the section entitled “Risk Factors” of KKR & Co. Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. , filed with the SEC on February 28, 2022, as these factors may be updated from time to time in our periodic filings with the SEC, which are available on the SEC’s website at www. .sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements included in this press release and in KKR’s filings with the SEC.

All forward-looking statements speak only as of the date of this press release. KKR undertakes no obligation to update forward-looking statements to reflect circumstances or events that occur after the date such statements were made, except as required by law. Past performance is neither indicative nor a guarantee of future performance.

1 Assets under management in this press release are based on gross assets and the latest publicly announced figures.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220427006244/en/

contacts

KKR Asia-Pacific Corporate Communications
Anita Davis
[email protected]
+852 3602 7335

KKR Americas Corporate Communications
Christine Huller
[email protected]
+1 (212) 750-8300

KKR Investor Relations
Craig Larson
[email protected]
+1 (877) 610-4910 / +1 (212) 230-9410