Fairfax Financial to Take Kennedy Wilson Private in $1.65B All-Cash Deal

Kennedy Wilson, one of the largest publicly traded real estate investment platforms in the world, is going private in a $1.65 billion all-cash deal led by its own chairman and CEO, William McMorrow, alongside Canadian financial conglomerate Fairfax Financial Holdings.

The definitive merger agreement, announced February 17, values Kennedy Wilson shares at $10.90 each — a 46% premium over the company's unaffected share price as of November 4, 2025, when the consortium's proposal was first disclosed. KW shares surged nearly 10% in premarket trading on the news.

A $31 Billion Platform Goes Dark

Kennedy Wilson manages approximately $31 billion in assets across the United States, United Kingdom, and Ireland. Since its 2009 IPO, the company has completed over $60 billion in transactions and built a portfolio spanning more than 65,000 multifamily and student housing units.

The company has been on an aggressive acquisition tear. In September 2025, Kennedy Wilson acquired Toll Brothers' Apartment Living platform for $347 million, adding roughly $5 billion in AUM. Other recent deals include a $173 million multifamily community in Seattle and a $116 million housing complex in Santa Barbara County.

Under the terms of the deal, McMorrow and KW's management team will retain operational control of the company post-closing, while Fairfax will hold a majority economic interest. Kennedy Wilson common shares will cease trading on the NYSE and will be deregistered with the SEC.

15-Year Partnership Comes Full Circle

The acquisition caps a relationship between Fairfax and Kennedy Wilson spanning more than 15 years and $8 billion in joint acquisitions. Fairfax made its initial $100 million equity investment in 2010, followed by preferred stock purchases totaling $500 million, a $2 billion real estate debt joint venture, and a partnership on Pacific Western Bank's $2.6 billion loan portfolio during the 2023 banking crisis.

Fairfax Financial, led by chairman Prem Watsa — often called "Canada's Warren Buffett" — manages a financial conglomerate with revenues exceeding $8 billion. The firm's strategy of using insurance float as low-cost capital to acquire hard assets mirrors the approach that made Berkshire Hathaway famous.

Deal Mechanics

The transaction requires approval from a majority of unaffiliated shareholders and is expected to close in Q2 2026. Moelis & Company and Cravath, Swaine & Moore are advising the special committee, while BofA Securities and J.P. Morgan are advising the consortium. A $42.7 million break-up fee applies in certain circumstances.

What It Means for CRE

The deal reflects a broader trend of major real estate operators choosing private ownership over public markets. Kennedy Wilson cited the ability to execute its business plan without the expense and burden of public reporting as a key motivation.

For CRE markets, the transaction signals continued appetite from insurance-backed capital for hard real estate assets. With $31 billion in AUM moving into private hands, the deal represents significant consolidation in institutional real estate management — and suggests that the consortium sees long-term upside in multifamily and student housing that public market valuations may not fully reflect.