Optio Investment Partners, Kennedy Lewis Investment Management and KKR announce multi-year financing agreement Back to Press Releases

Optio Investment Partners, Kennedy Lewis Investment Management and KKR announce multi-year financing agreement

January 23, 2024

Stockholm and London, 23 January, 2024 – Optio Investment Partners (“Optio”), an innovative credit platform, Kennedy Lewis Investment Management (“Kennedy Lewis”), a leading alternative credit manager, and KKR, a leading global investment firm, today announced a multi-year, multi-jurisdiction agreement. Under this agreement, Kennedy Lewis and KKR will provide asset-based funding to support the Optio Auto Evolution strategy, driving next generation auto financing. To ensure growth, in 2021, Optio entered into a partnership with Volvo Car Corporation (“Volvo Cars”).

The agreement commenced in December 2023 with an initial commitment of up to USD 750 million to fund the Optio Auto Evolution leasing and subscription strategy for retail and business customers across the UK. The agreement also extends funding to other jurisdictions across Europe, with an ambition for substantial growth in financed volumes over the next four years.

This relationship will support Optio and their partners’ ambition of a scalable multibillion USD solution for their subscription business across Europe. A proprietary tech platform has been built and integrated over the past years to support this. The growth of Optio’s Auto Evolution strategy will provide more consumers with access to flexible and competitive car subscription solutions, as well as a diversified product range with an increasing number of electric vehicles.

Björn Lagerstam, Co-founder, at Optio, said: “We at Optio are delighted to work with Kennedy Lewis and KKR for our inaugural strategy, Optio Auto Evolution. Optio was established to change the status quo in terms of financing real assets, and Auto being one of the largest asset backed markets, it was an obvious starting point. Since signing our first asset partner agreement in 2021, we have spent time establishing a robust investment and tech platform which enables scale as well as an attractive offering, both for investors, manufacturers, and asset owners. This new multi-year, multi-jurisdiction agreement is a great next step for scaling the Optio Auto Evolution strategy and subsequent Optio strategies.”

David K. Chene, Co-Founder and Co-Managing Partner at Kennedy Lewis, commented: “We are thrilled to provide this tailored asset-based financing solution to Optio in order to accelerate their growth. This investment demonstrates our structuring creativity and partnership-first mindset, and we look forward to supporting Optio and Volvo Cars’ rollout across the European market. This is an exciting opportunity for Kennedy Lewis to invest behind an innovative platform for the benefit of our investors.”

Vaibhav Piplapure, Managing Director in KKR’s Credit team, added: “This transaction creates a significant opportunity to help Optio scale its unique proposition, while accelerating growth for Volvo Cars. Automotive finance continues to be a core theme for KKR’s asset-based finance strategy, with auto companies increasingly looking for innovative solutions to help maintain stable cash flows and free up their balance sheet for product development, primarily in electrification. We look forward to building on this relationship with Optio in the years ahead.”

KKR will fund the transaction through credit funds, vehicles and accounts managed or advised by it under its Asset-Based Finance strategy.

Akin Gump Strauss Hauer & Feld LLP acted as legal advisor to Kennedy Lewis and KKR, and Ashurst LLP acted as legal advisor to Optio.

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About Optio
Optio is an originator and private credit platform established in 2021 currently present in Sweden, UK and Luxembourg. Its expertise is to provide Asset Backed solutions and support asset partners using its scalable investment and tech platform. Optio acts on opportunities where current financing possibilities are inefficient and aims to partner with sustainable businesses, where they enable asset partners to accelerate their green transition journeys through capital management. Optio’s first strategy “Auto Evolution” is purchasing subscription cars with a focus to accelerate electrification and the direct-to-consumer business of the auto industry. The Auto Evolution strategy has been live since June 2023. (https://www.optioinvest.com/)

About Kennedy Lewis
Kennedy Lewis is an alternative credit manager founded in 2017 by David K. Chene and Darren L. Richman with approximately $14 billion under management across private funds, a business development company, and collateralized loan obligations. The firm seeks to deliver attractive risk adjusted returns for clients by investing across the credit markets through its opportunistic credit, homebuilder finance, core lending and broadly syndicated loan strategies. For more information, please visit Kennedy Lewis’ website at www.klimllc.com.

About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

Media Contacts

Optio Investment Partners
Tina Söderlund-Boley, tina@optioinvest.com
Phone +44 7872 484913
Head of Sales, Marketing and Investor Relations

Kennedy Lewis
Prosek Partners
Josh Clarkson
jclarkson@prosek.com
+1 212 279 3115

KKR
FGS Global
Alastair Elwen / Sophia Johnston
KKR-Lon@FGSGlobal.com
Tel: +44 (0) 20 7251 3801


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