Form 4: KKR Real Estate Select Trust Inc.: KKR Alternative Assets LLC Acquires Additional Shares as Payment for Management Fees

KKR Alternative Assets LLC acquired 105,080.423 shares of KKR Real Estate Select Trust Inc. common stock as payment for management and incentive fees.

Summary

• On March 28, 2024, KKR Alternative Assets LLC acquired 105,080.423 shares of KKR Real Estate Select Trust Inc. common stock.
• The shares were issued as payment for management and/or incentive fees under the investment advisory agreement between KKR Real Estate Select Trust Inc. and KKR Registered Advisor LLC.
• KKR Registered Advisor LLC directed that KKR Alternative Assets LLC, its affiliate, receive the shares on its behalf.
• The price per share was $26.07.
• Following the transaction, KKR Alternative Assets LLC beneficially owns 7,634,241.092 shares of common stock indirectly.
• Several entities and individuals, including KKR Group Assets Holdings II L.P., KKR Group Assets II GP LLC, KKR Group Partnership L.P., KKR Group Holdings Corp., KKR Group Co. Inc., KKR & Co. Inc., KKR Management LLP, Henry R. Kravis, and George R. Roberts, are listed as reporting persons with indirect beneficial ownership.
• All reporting persons disclaim beneficial ownership except to the extent of their pecuniary interest.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The transaction reflects ongoing business operations and alignment of interests through management fee payments. There are no immediately apparent negative implications.

Positives

• The acquisition of shares by KKR Alternative Assets LLC reflects ongoing management and incentive fee payments, indicating continued engagement and alignment of interests.

Risks

• The complex ownership structure could potentially obscure transparency and accountability.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.

Related Party Transactions

• The issuance of shares to KKR Alternative Assets LLC as payment for management and incentive fees pursuant to the investment advisory agreement constitutes a related party transaction.

Stakeholder Impact

• The transaction could have a minor positive impact on shareholders by aligning management's interests with the company's performance.

Key Dates