Core Insights - KKR and Kreate Asset Management have completed the acquisition of Cheongna Logistics Center, marking the largest single asset logistics transaction in Korea to date [1][2] Company Overview - KKR is a leading global investment firm that focuses on alternative asset management and capital markets solutions, aiming to generate attractive investment returns through a disciplined investment approach [6] - Kreate Asset Management, established in 2024 by KKR, specializes in commercial real estate in Korea, including logistics centers, offices, hospitality, and rental housing assets [7] Industry Context - The Cheongna Logistics Center is a modern logistics facility covering 4.6 million square feet, strategically located with strong connectivity to major transportation hubs in the Greater Seoul metropolitan area [2] - The demand for high-specification warehouses is increasing in Korea's e-commerce-driven economy, highlighting the critical role of modern logistics facilities [2] Operational Strategy - Following the acquisition, Kreate will manage and operate the Cheongna Logistics Center, while KKR will focus on value creation strategies to maintain the asset's high quality [3] - KKR's investment in Cheongna Logistics Center is part of its broader Asia real estate strategy, which includes other significant investments in logistics and commercial properties in Korea [4]

Group 1 - A consortium led by private equity firms KKR and PAG has agreed to acquire Sapporo Holdings' real estate subsidiary in a deal valued at approximately $3 billion [1] - This transaction represents another significant move in the ongoing trend of private equity firms investing in real estate assets [1] - The acquisition highlights the growing interest of private equity in the real estate sector, particularly in high-value assets [1]

Group 1 - The consortium has agreed to acquire the real-estate subsidiary of the Japanese beer maker, which is valued at approximately $3 billion [1]

Core Viewpoint - KKR & Co. Inc. advises investors to explore opportunities beyond the crowded U.S. large-cap market, focusing on Asian corporate reforms, biotechnology, and critical infrastructure for growth in 2026 [1] Asian Reform Trade - KKR identifies a structural shift in Asia as a key opportunity for 2026, emphasizing corporate governance reforms over mere economic growth [2] - Japan and South Korea are highlighted as prime markets where companies are transitioning from "capital heavy to capital light" models to enhance shareholder value [2] - Despite a 50% gain in 2025, 70% of the Korean market trades below book value, compared to 40% in Japan and less than 7% in the U.S., indicating mispricing relative to reform potential [3] Market Performance - Asian benchmark indices have shown significant performance in 2025: - Kospi Index: 71.20% YTD, 68.28% One-Year - Hang Seng Index: 31.57% YTD, 28.46% One-Year - Nikkei 225 Index: 28.10% YTD, 28.99% One-Year - CSI 300 Index: 21.19% YTD, 16.22% One-Year - S&P 500 Index: 17.74% YTD, 14.40% One-Year - Nasdaq Composite Index: 22.20% YTD, 22.20% One-Year - Dow Jones Index: 14.27% YTD, 11.88% One-Year [4] Biotechnology Sector - KKR views biotechnology as a compelling investment opportunity, driven by aging demographics and the integration of AI in drug development [5] - The sector is seen as a "secular growth story," offering innovation-led growth at more attractive valuations compared to traditional tech sectors [5] Biotech ETFs Performance - Notable biotech ETFs and their performance: - State Street SPDR S&P Biotech ETF: 36.45% YTD, 35.78% One-Year - iShares Biotechnology ETF: 29.49% YTD, 28.48% One-Year - ARK Genomic Revolution ETF: 23.22% YTD, 24.65% One-Year [6] Infrastructure Investment - KKR is optimistic about infrastructure investments, particularly in HVAC and cooling systems essential for the digital economy, driven by increased cooling needs for AI training clusters [8] - The firm also identifies U.S. Liquefied Natural Gas (LNG) as a long-term structural winner due to energy security demands from Europe and Asia [8] Infrastructure ETFs Performance - Key infrastructure ETFs and their performance: - Global X US Infrastructure Development ETF: 22.11% YTD, 18.81% One-Year - iShares Global Infrastructure ETF: 17.24% YTD, 17.80% One-Year - iShares US Infrastructure ETF: 15.27% YTD, 14.92% One-Year [10]

Core Viewpoint - PAG, a prominent Asia-based alternative investment firm, and KKR have finalized agreements to acquire 100% of Sapporo Real Estate Co., Ltd. from Sapporo Holdings [4] Group 1: Acquisition Details - The acquisition involves the complete purchase of Sapporo Real Estate Co., Ltd. by PAG and KKR [4] - Sapporo Holdings has disclosed that the consideration amount for the sale of Sapporo Real Estate is part of the transaction [4]

Core Viewpoint - PAG and KKR have signed definitive agreements to acquire 100% of Sapporo Real Estate from Sapporo Holdings, with the first tranche of 51% expected to close on June 1, 2026, facilitating a smooth transition [1] Group Overview - Sapporo Holdings has a history of over 140 years and operates in three main sectors: alcoholic beverages, food and soft drinks, and real estate. The company aims to focus on its alcoholic beverages business by divesting its real estate segment [2][5] - Sapporo Real Estate manages a diverse portfolio of commercial, office, hotel, and residential assets primarily in Ebisu and Sapporo. Post-transaction, it will operate as an independent entity under PAG and KKR [3][7] Strategic Intent - Sapporo Holdings plans to reinvest proceeds from the sale into growth initiatives within its alcoholic beverages business, enhancing customer experiences and focusing on capital efficiency [2] - PAG and KKR intend to leverage their extensive global networks and operational expertise to enhance the value of Sapporo Real Estate's portfolio and contribute to urban development [3][4] Investment Firms Overview - PAG is a leading alternative investment firm in the Asia-Pacific region, managing over USD 55 billion in assets and having invested more than USD 48 billion in real estate across the region [8] - KKR is a global investment firm that focuses on alternative asset management and aims to generate attractive investment returns through a disciplined approach and support for portfolio companies [9]

Core Viewpoint - KKR has successfully completed its tender offer for Forum Engineering Inc., acquiring a significant ownership stake and planning further consolidation to achieve full ownership [1][2][3]. Group 1: Tender Offer Details - KKR's tender offer for Forum Engineering was completed on December 23, 2025, through KJ003 Co., Ltd., an entity owned by KKR-managed funds [1]. - The Offeror is set to acquire 29,761,258 shares, which equates to a 55.89% ownership ratio on a fully diluted basis [2]. - Settlement for the shares acquired in the tender offer will begin on December 30, 2025 [2]. Group 2: Self-Tender and Future Plans - Forum Engineering will initiate a self-tender offer, with major shareholder La Terre Holdings expected to tender its entire 37.07% stake [3]. - Following the self-tender, KKR aims to consolidate shares to achieve full ownership of Forum Engineering, with an extraordinary shareholders' meeting planned for late February 2026 [3]. Group 3: Investment Strategy - KKR's investment in Forum Engineering is primarily sourced from its Global Impact Fund II, indicating a focus on impactful investments [4]. - KKR's Managing Director emphasized the strategic partnership's goal to enhance engineering talent development in Japan and create lasting impacts for engineers and clients [5].

Core Viewpoint - Sapporo Holdings is planning to divest its real estate business to a consortium led by KKR for 400 billion yen ($2.6 billion) to focus on its core beer brewing operations [1][2][3] Group 1: Company Strategy - Sapporo aims to concentrate management resources on its primary operations, specifically its beer business, by negotiating the sale of its real estate assets [2] - The funds generated from the sale will be reinvested into the beer business and other areas to enhance corporate value [3] Group 2: Real Estate Business Details - The real estate holdings include the Yebisu Garden Place in Tokyo, which features the Yebisu Brewery along with dining and shopping options [2] - The investment consortium, which includes KKR and PAG, plans to increase property profits by attracting new tenants and considering future redevelopment of Yebisu Garden Place [3] Group 3: Market Reaction - Following the announcement of the sale, Sapporo's shares increased by 2.86% [4]

Core Insights - Coty has appointed Markus Strobel as executive chairman of the board and interim CEO, effective January 1, 2026, following the planned departures of Peter Harf and Sue Nabi [1][4] Group 1: Leadership Transition - Markus Strobel brings over 30 years of experience from Procter & Gamble, where he led the global skin and personal care division and oversaw various beauty categories [1][2] - Strobel's appointment comes at a critical time as Coty conducts a strategic review of its Consumer Beauty division [3] Group 2: Company Background and Recent Developments - Coty, founded in Paris in 1904, operates in the beauty sector, offering fragrance, cosmetics, and skin and body care products in over 120 countries [5] - Under Sue Nabi's leadership, Coty launched new fragrances and reduced its financial net leverage to approximately 3 times [5] - Recently, Coty agreed to sell its remaining 25.8% stake in professional haircare group Wella to KKR-managed investment funds [5]

Core Insights - Coty has agreed to sell its remaining 25.8% stake in Wella to KKR for an upfront cash payment of $750 million, completing its divestment plan initiated in 2020 [1] - The transaction is expected to enhance Coty's financial position by lowering its net leverage to around 3x by the end of CY25, with a long-term goal of achieving a leverage ratio of 2.0x [2][3] - Coty plans to use the majority of the cash proceeds to reduce both short- and long-term debt, alongside anticipated free cash flow of over $350 million in the first half of FY26 [3] Financial Performance and Strategy - Coty anticipates additional cash inflows from the Wella transaction, which could bring total gross returns closer to the book value of its investment [2] - The strategic partnership with KKR has been beneficial, allowing Coty to capitalize on Wella's growth and strengthen its financial foundations [4] Business Review - In October, Coty initiated a strategic review of its consumer beauty segment, focusing on its $1.2 billion mass color cosmetics business and its Brazilian operations generating close to $400 million in revenue [5]