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KKR & Co. Inc. (NYSE:KKR) and Ares Management Corp. (NYSE:ARES) announced Monday that KKR will sell railcar leasing company Infinity Transportation to Ares-managed funds for approximately $2.9 billion.
The deal, involving Ares Infrastructure Equity and Ares Insurance Solutions funds, is expected to close in the first quarter of 2027, subject to regulatory approvals and customary closing conditions.
Founded in 2004, Atlanta-based Infinity owns and manages approximately 50,000 railcars leased to more than 350 customers across the United States, Canada and Mexico.
KKR's wholly owned insurance subsidiary, Global Atlantic, first invested in Infinity in 2016.
Since 2021, Infinity has built a standalone operating platform and expanded its fleet with KKR's support. As a result, its book value increased 150%, making it one of the largest railcar leasing companies in the United States.
KKR partner Daniel Pietrzak said the transaction demonstrates how long-term capital and industry expertise can help expand asset-based finance businesses.
Infinity President and CEO Jeff Edelman credited KKR's backing for the company's fleet expansion and operational growth.
Following the acquisition, Ares plans to support Infinity's fleet expansion, strengthen customer relationships and pursue additional acquisitions.
Ares executives Mike Roth and Anup Agarwal highlighted growing demand for transportation infrastructure as manufacturers bring production closer to home and invest in domestic industrial capacity.
They also pointed to increased efforts to strengthen supply chains, which could support long-term demand for railcar leasing.
Ares managed more than $671 billion in assets as of June 30, 2026.
Separately, the European Commission said Monday that it had issued a Statement of Objections to KKR over allegedly incorrect or misleading information provided during its 2024 investigation of the firm's acquisition of Italian broadband network operator NetCo.
Regulators raised concerns about KKR's representations regarding existing wholesale broadband access agreements. The Commission said those assurances played a key role in its decision to approve the acquisition.
KKR could face fines of up to 1% of its annual worldwide revenue if regulators establish a violation. However, the findings are preliminary, and KKR has an opportunity to respond before any final decision.
KKR stock remains in a bearish technical setup, trading 5.1% below its 20-day SMA, 13.3% below its 50-day SMA and 13.6% below its 200-day SMA.
The RSI stands at 32.16, approaching oversold territory, while MACD remains below its signal line, pointing to weak momentum. The bearish trend was reinforced by an October death cross, when the 50-day SMA fell below the 200-day SMA.
KKR has declined 27.47% over the past 12 months and trades near the bottom of its 52-week range at 7.2%.
Key support sits at $86.50, with resistance at $104. Holding support could set up a rebound, while a break below it would reinforce the prevailing downtrend.
KKR's next earnings report is scheduled for Nov. 9, 2026.
Analysts expect EPS of $1.60, up from $1.41 a year earlier, on revenue of $2.60 billion versus $2.40 billion in the prior-year period.
KKR has a Buy consensus rating, with an average price forecast of $125.27 from 22 analysts. The high target is $166, and the low is $97.
Recent analyst actions include UBS maintaining a Buy rating while lowering its forecast to $122, TD Cowen maintaining Hold with a $103 forecast, and Barclays maintaining Overweight while cutting its forecast to $130.
KKR Stock Price Activity: KKR shares were up 1.00% at $87.08 at the time of publication on Monday, according to market data.
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