Aon Plc (NYSE:AON) confirmed on August 31 that it will buy USI Insurance Services from KKR & Co. Inc. (NYSE:KKR) for $17.0 billion in an all-cash deal funded by new debt. Aon expects $395 million in annual run-rate synergies, with the deal accretive to adjusted earnings per share in 2028. Aon shares fell in premarket trading on the news, Reuters reported. CEO of Aon Greg Case said the combination creates the “premier U.S. middle-market platform,” while KKR, USI’s largest shareholder, expects to book about $3.3 billion in after-tax proceeds.
According to Insider Monkey’s own fund-tracking database, the deal lands as hedge fund interest in both companies had already been fading for several quarters, with specific funds noting concerns unrelated to this transaction.
Bull Case
KKR & Co. Inc. (NYSE:KKR)’s realized return on USI provides a concrete example of successful underwriting. Under KKR’s ownership, USI nearly tripled its revenue and completed more than 90 acquisitions. KKR now expects roughly $3.3 billion in after-tax proceeds plus about $2 billion in adjusted net income. It gives investors tangible evidence that its private-equity strategy can create substantial value.
The USI deal also gives Aon a clear opportunity to extend its middle-market strategy. Aon Plc (NYSE:AON) expects $395 million in annual run-rate synergies and adjusted EPS accretion in 2028. It gives investors measurable targets for judging the deal’s success. The acquisition builds directly on Aon’s 2024 purchase of NFP. So it allows the firm to expand a strategy it has already pursued rather than enter an unfamiliar market.
Some hedge funds still see significant value in KKR & Co. Inc. (NYSE:KKR) despite recent caution. Greenhaven Road Capital wrote in its second-quarter 2026 letter that “KKR remains a great business” and argued that private-credit concerns will pass while assets under management continue to grow. If KKR converts its USI proceeds into attractive new investments and Aon delivers its projected synergies, both companies could regain hedge-fund interest.
Bear Case
Aon Plc (NYSE:AON)’s hedge-fund ownership has declined for three consecutive quarters, showing concerns that extend beyond the USI transaction. Insider Monkey’s database shows that 70 hedge funds held Aon at the end of the fourth quarter of 2025, compared with 65 in the first quarter of 2026 and 61 in the second quarter. Polen Focus Growth Strategy also exited Aon after concluding that a softening property-and-casualty insurance market could make future organic growth harder to achieve.