KKR Fund completes acquisition of Insight Select Income assets

Published 10/02/2025, 23:54
KKR Fund completes acquisition of Insight Select Income assets

NEW YORK - KKR Income Opportunities Fund (NYSE: KIO), currently trading at $12.86 with a market capitalization of $349 million, has finalized its acquisition of the assets of Insight Select Income Fund (INSI), with INSI’s shares ceasing trading as of January 31, 2025. According to InvestingPro data, KIO maintains an attractive P/E ratio of 5.24 and boasts a robust Financial Health Score of 3.53. The transaction has resulted in INSI shareholders receiving 1.34709 shares of KIO for each share of INSI held, based on the closing net asset values on February 6, 2025.

The deal stipulates that only whole shares of KIO will be issued, and any fractional shares will be liquidated at market value, with proceeds paid out in cash. Additionally, 55.6% of INSI shareholders elected to receive a portion of their consideration in cash, which will amount to approximately 8.8% of the value of their INSI shares, with the remaining balance in KIO shares.

The distribution of cash election proceeds and whole shares is scheduled for February 12, 2025. Cash from the sale of fractional shares will be distributed to shareholders early the following week.

UBS Securities LLC acted as financial advisor to Insight North America LLC, while Dechert LLP and Clifford Chance LLP served as legal counsel to KIO and Insight, respectively. Troutman Pepper Hamilton Sanders LLP provided legal counsel to INSI.

KKR Income Opportunities Fund is a diversified, closed-end management investment company managed by KKR Credit Advisors (US) LLC, focusing on high current income and capital appreciation through investments in a variety of loan and fixed-income instruments. The fund has maintained dividend payments for 13 consecutive years, currently offering an impressive 11.43% dividend yield. InvestingPro analysis reveals several more key insights about the fund’s performance and strategy. The Fund employs a dynamic investment strategy, which includes hedging strategies to manage risk and aims to deliver attractive risk-adjusted returns.

Investors should be aware that the use of leverage by KIO can lead to increased income potential but also comes with risks, such as heightened volatility in the fund’s net asset value (NAV) and market price. While the fund generally trades with low price volatility according to InvestingPro data, it is currently trading near its 52-week low of $12.54, potentially presenting an interesting entry point for value-focused investors. The fund’s investments, which may include derivatives and securities of international issuers, are subject to market changes, interest rate risks, and other factors affecting their value.

This news is based on a press release statement from KKR Income Opportunities Fund.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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