Asset Manager Enters Next Phase of Growth Under New Name, KJR Management
The strategic deal deepens KKR’s commitment to Japan and increases AUMs for the global real estate business to US$54 billion
New York and Tokyo, April 28, 2022– (BUSINESS WIRE) – KKR & Co. has announced. Inc. (together with its subsidiaries “KKR”) today closes the previously announced transaction in which KKR purchased all shares of Mitsubishi Corp.-UBS Realty Inc. (“MC-UBSR”), a leading Japanese real estate asset management company.
KKR has completed the acquisition of all outstanding shares in MC-UBSR from Mitsubishi Corporation and UBS Asset Management. From now on, the Asset Manager, formerly MC-UBSR, will operate under the name “KJR Management” (“KJRM”), effective immediately.
In addition, KKR completed its acquisition of units in the two funds managed by KJRM, the Japan Metropolitan Fund Investment Corporation (“JMF”) and the Industrial and Infrastructure Investment Corporation (“IIF”) formerly owned by Mitsubishi Corporation (combined, with the purchase of all MC-UBSR shares, the “acquisition”). JMF and IIF will continue to pursue their current strategies under their current names. Each of the JREIs will be managed and supported by approximately 160 professionals who are expected to continue at KJRM in their current roles 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 growth as part of KKR. While our core operations and investment process in JMF and IIF will remain unchanged, we believe KJRM will be able to build on the skills and complementary relationships for each to deliver robust outcomes for our REIT unit owners and meet the investment requirements of our clients.”
Hiro Hirano, CEO of KKR Japan and co-chair of KKR’s Asia Pacific Private Equity division, said, “We are delighted to welcome this world-class team to KKR. They have built the leading asset management platform in the Japanese REIT market, and we look forward to supporting their growth and success on the the long term “.
The deal provides KKR’s global real estate business with immediate scope in a large and important market. With the completion of the transaction, the assets of global real estate platform KKR under management increased to approximately $54 billion.1
KKR is a leading global investment firm offering alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns through a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors mutual funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance companies offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR investments may include the activities of funded funds and affiliate insurance companies. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit the KKR website at www.kkr.com and on Twitter KKR_Co.
KJR Management (“KJRM”) is one of the largest real estate asset management companies in Japan, with assets under management of 1.7 trillion yen. KJRM is a pioneer in the Japanese Real Estate Investment Trust (“J-REIT”), and today manages two Tokyo Stock Exchange listed real estate investment trusts, the Japan Metropolitan Fund Investment Corporation (“JMF”) and the Industrial and Infrastructure Investment Fund (“IIF”). ). JMF, with approximately ¥1.2 trillion in assets under management as of February 28, 2022, is investing in retail, offices, hotels and other assets located in urban areas. IIF, with approximately 0.4 trillion JPY in assets under management as of January 31, 2022, focuses on industrial real estate and infrastructure in Japan.
This press release contains certain forward-looking statements. You may identify these forward-looking statements by using words such as “expect,” “believe,” “think,” “expect,” “possibility,” “continue,” “may,” “should,” “seek,” “almost” or “predict.” “intent,” “will,” “plan,” “estimate,” or “expect” the negative version of these or other similar words or other phrases not strictly related to history or factual matters. Forward-looking statements relate to expectations, estimates, beliefs, expectations, future plans and strategies, expected events or trends, and similar expressions relating to matters that are not historical facts, including without limitation statements regarding acquisitions; operation of KJRM after closing the deal; and opportunities for expansion, growth and other synergies resulting from the acquisition. Forward-looking statements are based on KKR’s beliefs, assumptions and projections, considering all information currently available to it. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to or under the control of the KKR. In the event of a change, KKR’s business, financial position, liquidity and results could 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: failure to realize the expected benefits within the timeframes expected from the acquisition; Unanticipated or consolidation obligations and other costs and timing of the acquisition; changes in KJRM’s business; Retain key personnel in KJRM; KJRM’s ability to maintain business relationships after acquisition; the severity and duration of the COVID-19 pandemic; the impact of the pandemic on the US, Japanese, and global economies; US and local intergovernmental, federal and state responses to the pandemic; failure to realize benefits or changes in KKR or KJRM’s business strategies including the ability to achieve synergies expected from acquisitions, strategic partnerships, or other transactions; Availability, conditions and distribution of capital; Availability of qualified personnel and expenses for hiring and retaining such personnel; changes in asset management or the insurance industry, interest rates, credit spreads, currency exchange rates or the general economy; Poor performance of KKR or KJRM investments and reduced ability to raise funds; Capital market volatility. KKR’s compliance with the laws applicable to its business; 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 the KKR competition.
These statements are subject to various risks, uncertainties and assumptions, including those described in the “Risk Factors” section of KKR & Co.’s annual report. SEC on February 28, 2022, as these factors may be updated from time to time in our periodic filings with the SEC, which can be accessed on the SEC website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements included in this press release and in KKR’s filings with the Securities and Exchange Commission.
All forward-looking statements speak only as of the date of this press release. KKR undertakes no obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as required by law. Past performance is not indicative or a guarantee of future performance.
1 The assets under management in this press release are based on total assets and are based on the most recent published figures.
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