The announcement by the two firms describes Guardian'sinvestment as "a major interest in the real estate services andinvestment firm of Kennedy Wilson." Guardian purchased $30 millionof convertible subordinated debt in Kennedy Wilson that, whenconverted, provides Guardian a 10% interest in the BeverlyHills-based company. Kennedy Wilson's management retains a 54.1%ownership.

Earlier this year, Kennedy Wilson raised $53 million in newequity through the issuance of convertible preferred shares. Amongthose investing in the previous offering were the LeFrakOrganization, a major real estate, energy and investment companybased in New York City. Another significant investor in theprevious offering was the Royce Funds of New York City.

William McMorrow, chairman of Kennedy Wilson, notes thatGuardian carries an AA+ Standard & Poor's rating. McMorrow saysthat the new capital "allows our company to take maximum advantageof the current opportunities in all sectors of the real estateinvestment, distressed debt and services businesses." ThomasSorell, executive vice president and chief investment officer ofGuardian, comments that the mutual life insurance firm's newrelationship with Kennedy Wilson "will provide us with greateropportunities to build on our solid real estate portfolio andprovide long-term value to our policyholders."

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