Summary
KKR & Co. L.P. (KKR) filed an 8-K on September 9, 2015, to announce a significant strategic acquisition. The company, through a subsidiary, has agreed to acquire a 24.9% equity interest in Marshall Wace LLP and its affiliates, a prominent global equity long/short and liquid alternatives manager. This initial stake is to be acquired through the issuance of approximately 7.4 million newly issued KKR common units, valued at over 1% of KKR's outstanding units, in a private placement exempt from registration. The transaction also involves a cash component, with a portion of it mandated for investment into Marshall Wace-managed funds. The agreement includes provisions for potential future stake increases, allowing KKR to acquire an additional 15% equity interest over the subsequent three years, potentially bringing its total ownership to 39.9%. These future acquisitions will be primarily cash-based, with KKR having the option to use common units. A significant portion of these future payments will also be subject to reinvestment into Marshall Wace funds or held in KKR common units, reinforcing the long-term commitment and alignment of interests between the two entities. The transaction is subject to customary closing conditions, including regulatory approvals.
Key Highlights
- 1KKR to acquire an initial 24.9% equity interest in Marshall Wace LLP, a global equity long/short manager.
- 2The acquisition involves the issuance of approximately 7.4 million KKR common units, representing over 1% of outstanding units, in a private placement.
- 3A portion of the acquisition consideration will be in cash, with a mandatory investment into Marshall Wace-managed funds.
- 4The agreement allows for potential future acquisitions, increasing KKR's stake to up to 39.9% over three years.
- 5Future acquisition payments can be made in cash or KKR common units at KKR's discretion.
- 6A significant portion of future payments must be reinvested into Marshall Wace funds or held in KKR common units, ensuring alignment.
- 7The transaction is subject to customary closing conditions, including regulatory approvals.