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KKR is set to generate a $3.3bn gain from the sale of USI Insurance Services to Aon in a $17bn transaction, marking another sizeable realisation for the private equity firm as deal activity and exit markets begin to improve, according to a report by Bloomberg.
The transaction is expected to generate approximately $2bn in adjusted net income for KKR. The firm holds USI through its Strategic Holdings business, a platform established in 2023 to invest its balance sheet in longer-term, cash-generative assets.
KKR first invested in USI in 2017, when the insurance brokerage was valued at around $4.3bn, and subsequently provided additional capital through three further investments. The Aon transaction is expected to deliver a 3.4x return on KKR’s balance-sheet capital invested in the business.
USI is one of the largest insurance brokerages in the US, ranking tenth nationally. It provides property and casualty insurance, employee benefits, personal risk and retirement services and has more than 10,500 employees across almost 200 offices.
The deal will strengthen Aon’s presence in the US middle-market insurance segment. USI chief executive and chairman Mike Sicard will become president of Aon and global CEO of its middle-market business, reporting to Aon CEO Greg Case and joining the company’s executive committee.
For KKR, the disposal represents another important exit following a period in which private equity firms have faced difficulty converting portfolio investments into realised returns.
The firm has recently benefited from a pick-up in M&A activity. Last month, KKR reported record quarterly profit, supported by $1.29bn of asset sales, including its stakes in semiconductor equipment manufacturer Kokusai Electric and engineering-services business HD Hyundai Marine Solution.
KKR’s Strategic Holdings strategy is designed to complement its traditional private equity business by allowing the firm to hold attractive assets for longer periods rather than being constrained by conventional fund lifecycles.
The platform currently has 18 investments and KKR expects it to generate more than $1bn of annual earnings by 2030. It generated approximately $232m of earnings in 2025.
Source: Private Equity Wire