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KKR plots entry into UK and European pension buyouts

KKR is planning to enter the UK and European pension buyout market, seeking to capitalize on growing demand from companies looking to offload pension liabilities. The US private equity firm aims to rival established players in the bulk purchase annuity sector.

Background

KKR, one of the world's largest private equity firms, is preparing to enter the UK and European pension risk transfer (PRT) market — the business of taking over corporate pension schemes by buying out their liabilities. This is a multibillion-dollar market dominated by insurers like Legal & General, Aviva, and Pension Insurance Corporation (PIC). KKR would likely use its insurance subsidiary, Global Atlantic, to compete directly with these traditional players.