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KKR agrees to sell USI Insurance Services to Aon for about $17B
The deal marks a roughly 6x return on KKR's original equity in USI, according to the firm, with operating earnings from its Strategic Holdings strategy targeted to exceed $1.1B by 2030.
KKR has agreed to sell USI Insurance Services, a US insurance brokerage and consulting firm, to Aon for around $17 billion, the New York alternative manager said Monday. The transaction is positioned as a major exit from USI, which KKR acquired in 2017 for $4.3 billion and later expanded through additional investments in 2020, 2023 and 2025, according to Yahoo Finance.
KKR said the sale reflects a multiple expansion, citing about a 6x return on its original equity in USI and a 3.4x return when accounting for additional investments. KKR co-CEO Joseph Bae also compared KKR's Strategic Holdings portfolio, which includes stakes in 18 companies, to Berkshire Hathaway, describing the holdings as businesses the firm believes it could own for the long term.
The company’s deal materials accompanying the transaction project that Strategic Holdings could generate over $1.1 billion in operating earnings by 2030, up from a forecast of $350 million in 2026. Yahoo Finance also notes that the Strategic Holdings approach uses KKR’s own balance sheet to pursue returns similar to direct investing, in addition to the management fees and carried interest KKR earns from fund investments in the same businesses.
The report further highlights that the exit underscores ongoing debate over long-hold private equity structures, including arguments that such vehicles can be used to defer capital return requirements. It also points to potential concerns raised by commentators and researchers about whether managers can add value over very long time horizons, as well as key-person risk for long-duration strategies.