Demand for private lending assets has been strong and growing for several years.
Alternative Assets giant KKR has closed its latest portfolio investing in the non-bank lending space, the $2.24bn KKR Private Credit Opportunities II fund.
The fund has a global mandate that seeks to take advantage of the “attractive fundamentals” KKR sees in the market for privately negotiated subordinated debt securities, corporate mezzanine investments as well as asset-backed and specialty finance investments.
“We continue to lean in to this strategy because global capital markets have evolved and created a permanent need for long-term capital providers to support financing activities,” Daniel Pietrzak, Member of KKR said.
“Specifically, we see significant opportunities for junior capital in asset-backed financing transactions. In addition, we expect the traditional corporate mezzanine opportunity set to be active in the coming years on the heels of increased M&A, corporate liquidity and available private equity capital,” he added.
The Fund is backed by a diverse group of new and existing global investors, including public pensions, sovereign wealth funds, insurance companies, insurance and banking platforms, family offices, and high net worth individual investors.
“We are pleased by the encouragement we have seen from so many new and existing Limited Partners. This strategy has and will continue to be an area of focus and growth for our credit business,” said Matthieu Boulanger, Member of KKR.
As of September 30, KKR’s global credit business, which includes both publicly traded and alternative credit and is led by Chris Sheldon and Nat Zilkha, respectively, had $41bn in assets under management.
The private credit business, part of the alternative credit business, is co-led by Matthieu Boulanger and Daniel Pietrzak and supported by staff 35 in New York, San Francisco, London and Dublin.