Core Insights - KKR has agreed to acquire Arctos Partners, valuing the sports-focused private equity firm at approximately $1 billion [1] Company Summary - KKR is a global investment firm involved in the acquisition of Arctos Partners [1] - Arctos Partners is a private equity firm that specializes in the sports industry [1]

Group 1 - Private-equity firms KKR and Warburg Pincus are among the bidders for TPG's Southeast Asia school business [1] - The potential valuation of the school business could reach up to $2 billion [1]

Core Insights - KKR & Co. Inc. reported income from monetization activities exceeding $525 million from October 1, 2025, to December 19, 2025, with ~95% of this income coming from realized performance income and ~5% from realized investment income [1] - The company’s strategic hedge fund partnerships contributed ~45% of the realized performance income, with a compensation rate of 10%-20% [1] - KKR's 2026 global macro-outlook indicates a 10-year forward CAGR implied by the S&P 500's current market value close to 16%, compared to 8% for much of the previous decade [2] - The inflation forecast for China was reduced to 0.3%, significantly below the 0.8% consensus, reflecting deeper structural pressures in services, consumption, and the labor market [2] - Companies are expected to focus on technology-driven productivity gains due to demographic and labor-supply challenges, with underinvestment in worker retraining creating opportunities for private and public capital [3] - Overall, better-than-expected GDP and earnings growth is anticipated across major regions in 2026, driven by low oil prices, increased savings rates, and accommodative financial conditions [4]

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].