KKR, Quadrantis Buying Minority Stakes in Fosun’s Peak Re

Fund managers KKR and Quadrantis Capital have agreed to acquire minority stakes in Hong Kong-based Peak Reinsurance at an undisclosed price.

Manhattan-based KKR and Portugal’s Quadrantis are picking up their respective 11.27 percent and 1.8 percent of Peak Re’s share capital from an exiting stakeholder, Prudential Financial, with the remaining 86.71 percent to be retained by parent group Fosun International, the parties said Tuesday in a release.

No financial terms were revealed, but Fosun had sought $1 billion for the reinsurer as recently as last year, according to a Bloomberg report, as the Shanghai-headquartered conglomerate looks to divest assets to ease its $33 billion debt load. At the end of 2024, Peak Re had an economic value of $1.6 billion and assets under management of $3.3 billion, the company said in an April disclosure.

Bing Gu, managing director on KKR’s Asia credit team, pointed to Peak Re’s strengths as an established regional platform with a disciplined underwriting approach and strong governance.

“We look forward to drawing from our global network and experience in insurance and reinsurance, as well as operational expertise to strengthen Peak Re’s leading position in the region,” Gu said.

Insurance Opportunities

Founded in 2012, Peak Re serves clients in Asia, Europe and the Americas with a focus on middle-class markets. The investments by KKR and Lisbon-based Quadrantis, a €350 million ($407 million) asset manager, are expected to close by the end of 2025.

“With KKR and Quadrantis Capital joining as new investors, we are further strengthening the platform that enables Peak Re to innovate, serve clients with excellence, and pursue quality growth globally,” said Peak Re CEO Franz-Josef Hahn. “We would also like to thank Prudential for their support as a valued minority shareholder and partner over the years.”

The Peak Re buy deepens KKR’s insurance commitments after the private equity giant completed its acquisition of Japan’s Hoken Minaoshi Hompo Group last month. The deal gave KKR control of an insurance distributor providing services at 350 retail locations across Japan and offering insurance products from more than 40 companies.

The US firm aims to help Hoken Minaoshi Hompo accelerate its growth strategy and unlock value through organic and inorganic growth strategies such as sales enablement and bolt-on acquisitions.

“As the industry continues to evolve, we see significant opportunities for the company to strengthen its platform and better serve the diverse needs of customers,” KKR Japan CEO Hiro Hirano said in September.

NYSE-listed KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic, which KKR has wholly owned on its balance sheet since January 2024.

Downsizing Continues

HKEX-listed Fosun is pursuing a plan to cut debt by RMB 10 billion ($1.4 billion) annually and dispose of non-core assets, including with last year’s announced $236 million sale of a ski resort with three on-site hotels in the northern Japanese prefecture of Hokkaido.

Bloomberg reported in September of last year that Fosun had held talks with Singapore’s CapitaLand Investment on the potential sale of a minority stake in the Club Med resort chain, but Club Med owner Fosun Tourism ultimately bought out its minority shareholders and went private in March.

Fosun Tourism dismissed Henri Giscard d’Estaing, son of former French president Valery Giscard d’Estaing, as chairman and CEO of Club Med in July after he spent 23 years in the role, replacing him with Carrefour executive Stephane Maquaire.