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

KKR Alternative Assets LLC acquired 109,859.713 shares of KKR Real Estate Select Trust Inc. common stock at $25.62 per share as payment for management and/or incentive fees.

Summary

• On June 28, 2024, KKR Alternative Assets LLC acquired 109,859.713 shares of KKR Real Estate Select Trust Inc. common stock.
• The shares were acquired at a price of $25.62 per share.
• The acquisition was made 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.
• Following the transaction, KKR Alternative Assets LLC beneficially owns 9,798,477.245 shares of KKR Real Estate Select Trust Inc. common stock indirectly.
• Multiple entities within the KKR structure, 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.
• Each reporting person disclaims beneficial ownership except to the extent of their pecuniary interest.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing indicating a standard business transaction. Sentiment is neutral as it reflects an expected activity rather than a significant positive or negative event.

Positives

• The acquisition of shares as payment for management fees indicates ongoing business activity and a continued relationship between KKR and KKR Real Estate Select Trust Inc.

Future Outlook

The document does not contain specific forward-looking statements, but the ongoing payment of management fees in shares suggests a continuation of the existing advisory agreement.

Management Comments

• Each of the Reporting Persons disclaims beneficial ownership of the securities reported herein, except to the extent of such Reporting Person's pecuniary interest therein.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by insiders, providing transparency to the market regarding the actions of company executives and major shareholders.

Comparison to Industry Standards

• Form 4 filings are a standard regulatory requirement for publicly traded companies in the United States, ensuring transparency regarding insider transactions.
• The acquisition of shares as payment for services is a common practice in the investment management industry, aligning the interests of the manager with those of the fund.

Related Party Transactions

• The issuance of shares to KKR Alternative Assets LLC is a related party transaction due to the investment advisory agreement between KKR Real Estate Select Trust Inc. and KKR Registered Advisor LLC, an affiliate of KKR Alternative Assets LLC.

Stakeholder Impact

• The transaction has a minor impact on shareholders as it represents a payment for services rendered and a slight dilution of existing shares.

Key Dates