KKR Income Opportunities Fund: Merger with Insight Select Income Fund Delayed

KKR Income Opportunities Fund (KIO) has announced the adjournment of its special meeting of shareholders, originally scheduled for January 10, 2025. The meeting was convened to vote on the issuance of additional common shares in connection with the proposed reorganization with Insight Select Income Fund (INSI). The adjournment aims to permit additional shareholder solicitation and to allow shareholders more time to vote on the issuance of additional common shares of beneficial interest of the Fund in connection with the transfer at net asset value of all of the assets and certain liabilities of INSI to KIO.

The special meeting will reconvene on January 15, 2025, at 10:00 AM Eastern Time in the offices of Dechert LLP, 1095 Avenue of the Americas, 28th Floor, New York, New York 10036. The proposed merger involves the transfer of all assets and certain liabilities from INSI to KIO at net asset value, which could potentially create economies of scale and improve operational efficiency.



The adjournment of the special meeting represents a standard procedural move in fund reorganizations. However, the additional time for shareholder solicitation and voting could potentially impact the likelihood of the merger's approval. By extending the voting period, KIO allows for more shareholder engagement and the opportunity to address any concerns or questions shareholders may have about the merger. This could lead to a higher turnout and potentially more support for the proposal.

The proposed merger with INSI could provide several strategic benefits for KIO, including economies of scale, diversification of the portfolio, access to new investors, improved liquidity, and enhanced risk management. By merging with INSI, KIO can potentially reduce its operating expenses by consolidating certain functions and resources, leading to improved operational efficiency and increased profitability. The merger would also allow KIO to diversify its portfolio by gaining access to INSI's assets, which may include different industries, geographies, or asset classes. This diversification could help mitigate risk and potentially enhance returns.

In conclusion, the adjournment of the special meeting of shareholders for KKR Income Opportunities Fund's proposed merger with Insight Select Income Fund provides an opportunity for KIO to engage with shareholders and address any concerns they may have. The merger could potentially create economies of scale, diversify the portfolio, and improve operational efficiency for KIO. As the special meeting reconvenes on January 15, 2025, shareholders will have the opportunity to vote on the issuance of additional common shares in connection with the proposed reorganization. The success of the merger will depend on the approval of the shareholders and the successful integration of INSI's assets and operations.