Form 4: KKR Real Estate Select Trust Inc. Insider Filing: KKR Alternative Assets LLC Acquires Shares for Management Fees

KKR Alternative Assets LLC acquired 49,899.135 shares of KKR Real Estate Select Trust Inc. common stock at $25.56 per share as payment for management and/or incentive fees.

Summary

• On May 31, 2024, KKR Alternative Assets LLC acquired 49,899.135 shares of KKR Real Estate Select Trust Inc. common stock.
• The shares were acquired at a price of $25.56 per share.
• This acquisition was made as payment for management and/or incentive fees according to the investment advisory agreement between KKR Real Estate Select Trust Inc. and KKR Registered Advisor LLC.
• Following the transaction, KKR Alternative Assets LLC beneficially owns 7,732,435.998 shares of common stock indirectly.
• The reporting persons, including KKR Alternative Assets LLC and related entities, disclaim beneficial ownership except to the extent of their pecuniary interest.

Sentiment

Score: 6

Explanation: The sentiment is neutral as it reflects a standard transaction related to management compensation. It doesn't indicate any significant positive or negative developments for the company.

Positives

• The acquisition of shares as payment for management fees aligns the interests of KKR with the performance of KKR Real Estate Select Trust Inc.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

Management Comments

• The filing indicates that the shares were issued as payment for management and/or incentive fees pursuant to the investment advisory agreement between KKR Real Estate Select Trust Inc. and KKR Registered Advisor LLC.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in the investment management industry. It reflects the compensation structure where management fees are sometimes paid in the form of company stock.

Comparison to Industry Standards

• Payment of management fees in the form of equity is a common practice in the real estate investment trust (REIT) sector and private equity industry.
• Companies like Blackstone (BX) and Apollo Global Management (APO) also utilize similar compensation structures to align management incentives with shareholder value.
• The specific amount and terms of the equity compensation are typically detailed in the investment advisory agreement, which is a standard document in the industry.

Related Party Transactions

• The issuance of shares to KKR Alternative Assets LLC is a related party transaction due to the affiliation with KKR Registered Advisor LLC, the investment advisor to KKR Real Estate Select Trust Inc.

Stakeholder Impact

• The transaction has a minor impact on shareholders as it represents a portion of management fees paid in equity.
• The alignment of management's interests with the company's performance can be viewed positively by shareholders.

Key Dates