Kennedy Wilson to Go Private in CEO-Led Buyout Amid Strategic Growth

BEVERLY HILLS, CA – February 25, 2026 – In a transformative move set to reshape its future, global real estate investment firm Kennedy Wilson (NYSE: KW) announced it has entered into a definitive agreement to be taken private by a consortium led by its Chairman and CEO, William McMorrow. The announcement coincided with the release of the company's fourth-quarter and full-year 2025 financial results, which highlighted significant strategic expansion and resilient operational performance despite a complex market.

The all-cash transaction will see the consortium, which includes other senior executives and long-time partner Fairfax Financial Holdings, acquire all outstanding common shares of Kennedy Wilson for $10.90 per share. The deal, expected to close in the second quarter of 2026, marks a pivotal shift for the firm, which has been publicly traded since 2009 and has grown to manage $36 billion in assets.

A Strategic Pivot to Private Ownership

The take-private merger follows a proposal first made public in November 2025. The $10.90 per share offer represents a substantial 46% premium over the company's closing price on the day before the initial proposal was disclosed. The transaction was unanimously recommended by a special committee of independent directors formed to evaluate the offer and negotiate its terms on behalf of public shareholders.

By transitioning to a private entity, Kennedy Wilson aims to achieve greater operational flexibility and focus on long-term value creation, free from the quarterly pressures and administrative costs of being a public company. According to the initial proposal, the move is expected to unlock cost savings and allow leadership to execute its strategy with a longer investment horizon. Post-transaction, the current management group, led by McMorrow, will retain operational control of the firm, with Fairfax holding a majority economic interest.

Closing the deal is contingent upon customary conditions, including regulatory approvals and a dual-majority shareholder vote. It requires approval from a majority of all outstanding capital stock as well as a separate approval from a majority of the votes cast by unaffiliated equity holders, a provision designed to ensure the deal is favorable to public investors.

Fueling the Growth Engine with Toll Brothers

The move toward privatization comes as Kennedy Wilson executes an aggressive expansion strategy, headlined by its recently completed acquisition of the Toll Brothers Apartment Living platform. The transaction, finalized in three phases across late 2025 and early 2026, significantly scales the company's presence in the U.S. rental housing market.

For a total purchase price of $334 million—of which Kennedy Wilson invested $131 million—the company added over $5 billion in assets under management (AUM). This includes an 11% average ownership stake in 18 apartment and student housing properties and a management contract for another 21 properties on behalf of Toll Brothers. The deal also brought an experienced in-house development team and a pipeline of 24 development sites, which, if completed, could represent an additional $2.9 billion in capitalization.

This landmark acquisition is a cornerstone of the company’s growing investment management business. For the full year 2025, investment management fees grew 16% to $115 million, propelled by Fee-Bearing Capital reaching $11.0 billion. The company’s global debt platform also expanded to $10.9 billion, with $3.6 billion in new construction loan originations completed during the year, primarily for multifamily and student housing projects.

Navigating a Complex Market with Resilient Performance

While the company reported a GAAP net loss attributable to common shareholders of $38.8 million for 2025, this marked a significant improvement from the $76.5 million loss reported in 2024. Furthermore, the firm’s preferred non-GAAP metrics, which strip out non-cash charges like depreciation, paint a picture of underlying operational health. Adjusted EBITDA for the full year rose to $549.5 million, while Adjusted Net Income saw robust growth, increasing to $119.8 million from $94.3 million in the prior year.

This performance is set against a backdrop of a stabilizing U.S. multifamily market, which saw record new supply deliveries in 2025. However, with new construction starts plummeting, supply is projected to tighten considerably in 2026, potentially creating a more favorable leasing environment for landlords. Kennedy Wilson’s same-property multifamily portfolio reflected this resilience, posting a 2.7% increase in net operating income (NOI) for the full year 2025 compared to 2024.

In addition to its U.S. operations, the company continued to expand its UK Single Family Rental Housing platform, acquiring 13 development sites with over 1,000 planned homes during the year. The firm's strategic asset recycling program also remained active, with $1.4 billion of dispositions and recapitalizations completed in 2025, generating $534 million in cash for Kennedy Wilson to redeploy into new opportunities.

A Disciplined Approach to Capital and Debt

Underpinning this strategic activity is a disciplined approach to capital management. As of year-end 2025, Kennedy Wilson’s share of debt carried a weighted-average interest rate of 4.8% with an average maturity of 4.4 years. Critically, in a period of fluctuating interest rates, the company has insulated itself from volatility, with approximately 92% of its debt either fixed-rate or hedged with interest rate derivatives.

This conservative balance sheet strategy provides a stable foundation as the company embarks on its next chapter as a private enterprise. For 2025, the company's dividend distributions were characterized as a 100% return of capital, which typically defers the tax liability for shareholders by reducing their cost basis in the stock. With the merger pending, Kennedy Wilson has indicated it may continue to pay its regular quarterly dividend of $0.12 per share until the required stockholder approvals are obtained.