KKR Closes $2.24 Billion Global Private Credit Fund Back to Press Releases

KKR Closes $2.24 Billion Global Private Credit Fund

January 8, 2018

NEW YORK–(BUSINESS WIRE)– KKR, a leading global investment firm, today announced the final closing of KKR Private Credit Opportunities II (“PCOP II” or the “Fund”), a $2.24 billion global fund 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. 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,” said Daniel Pietrzak, Member of KKR.

The Fund is focused on private corporate debt and mezzanine lending, financial assets, hard assets and structured credit.

PCOP II exceeded its target and is more than twice the size of its predecessor fund, KKR Mezzanine Partners I L.P., which completed its investment period in March 2015 with $1.0 billion in capital commitments. 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 $41 billion 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 35 dedicated individuals in New York, San Francisco, London and Dublin. With this new fund, the Firm’s Private Opportunistic Credit strategy manages approximately $5.0 billion in capital.

Representative current or past private credit investments include Central Park Leasing, a global aircraft leasing transaction, Toorak Capital, a loan purchasing program and platform to acquire and administer single family and small multi-family real estate bridge loans and PQ, a global producer of specialty inorganic performance chemicals and catalysts.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its strategic manager partnerships, hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside its partners’ capital and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

Media:
KKR
Kristi Huller or Cara Kleiman Major
+1 212-750-8300
media@kkr.com

Source: KKR


Download PDF

Back to Press Releases

Media Contacts

Americas

Kristi Huller
Miles Radcliffe-Trenner
Julia Kosygina
Telephone: +1 (212) 750-8300

Email: media@kkr.com

EMEA

Annabel Arthur
Telephone: +44 20 7839 9800

Email: kkrpr-uk@kkr.com

Asia-Pacific

Anita Davis
Wei Jun Ong
Telephone: +852 3602 7335

Email: media@kkr.com

Investor Relations

‍Craig Larson
Telephone: +1 (877) 610-4910
Outside US: +1 (212) 230-9410
Facsimile: +1 (212) 750-0003
Email: Investor-Relations@kkr.com

×

Listen to webcast

This presentation contains certain forward-looking statements pertaining to KKR & Co. Inc. and its consolidated subsidiaries (collectively “KKR”), including certain investment funds, vehicles and accounts that are managed by KKR (each, a “fund”). Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements are based on KKR’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to KKR or are within its control. If a change occurs, KKR’s business, financial condition, liquidity and results of operations, including but not limited to, assets under management, fee paying assets under management, after-tax distributable earnings, capital invested, syndicated capital, uncalled commitments, cash and short-term investments, fee related earnings, fee and yield segment EBITDA, core interest expense and book value, may vary materially from those expressed in the forward-looking statements. The following factors, among others, could cause actual results to vary from the forward-looking statements: whether KKR realizes all or any of the anticipated benefits from converting to a corporation and the timing of realizing such benefits; whether there are increased or unforeseen costs associated with the conversion, including any adverse change in tax law; the volatility of the capital markets; the general volatility of the capital markets; failure to realize the benefits of or changes in KKR’s business strategies including the ability to realize the anticipated synergies from acquisitions or strategic partnerships or other transactions; availability, terms and deployment of capital; availability of qualified personnel and expense of recruiting and retaining such personnel; changes in the asset management industry, interest rates or the general economy; underperformance of KKR's investments and decreased ability to raise funds; and the degree and nature of KKR’s competition. All forward-looking statements speak only as of the date they are made. KKR does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as required by law. In addition, KKR’s business strategy is focused on the long-term and financial results are subject to significant volatility.

Additional information about factors affecting KKR, including a description of risks that may be important to a decision to purchase or sell any common or preferred stock of KKR & Co. Inc., can be found in KKR & Co. Inc.’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and its other filings with the SEC, which are available at www.sec.gov.

I understand  |   Go back
×

Listen to Presentation

Before viewing this presentation, please acknowledge your understanding that it has been prepared for KKR & Co. Inc. (NYSE:KKR) for the benefit of its public stockholders and is not intended to be a solicitation or sale of any of the securities, funds or services that it may discuss. Please click on "I understand" to view the presentation.

I understand  |   Go back