NEW YORK–(BUSINESS WIRE)–Jul 13, 2022–
KKR, a leading global investment firm, today announced the final closing of KKR Asset-Based Finance Partners (“ABFP” or the “Fund”), KKR’s first fund dedicated to asset-based financial investments. “ABF” assets. The approximately $2.1 billion fund will commit capital globally to privately-traded and originated credit investments, backed by large and diverse pools of financial and sustainable assets, with attractive risk-adjusted returns.
“The $4.5 trillion ABF market is one of the most attractive and fastest growing opportunities within our private credit business today,” said Dan Pietrzak and Matthieu Boulanger, partners and co. – responsible for private credit at KKR. “At the same time, investors are increasingly looking for solutions that can provide collateral-based cash flow with attractive yield and downside protection in today’s highly volatile and inflationary environment. We see growing recognition of ABF as a standalone asset class that can generate attractive risk-adjusted returns. With the closure of the ABFP, we are pleased to play a leading role in meeting this demand while meeting the financing needs of consumers and businesses around the world.
“There are significant and growing opportunities for large-scale private capital in the ABF universe,” said Avi Korn, Chris Mellia and Varun Khanna, managing directors who oversee ABF investment strategy at KKR. “Demand has been driven by global bank deleveraging, the need for fast and sophisticated credit solutions and the inability of traditional capital to provide them. We believe the global footprint and breadth of our ABF strategy positions us well to meet this need and to find differentiated opportunities with compelling risk-adjusted returns.
ABFP has received strong support from a diverse group of new and existing investors, including public and corporate pension funds, sovereign wealth funds, commercial banks, insurance companies, managers of assets and family offices. KKR has invested approximately $150 million alongside external investors through its balance sheet and employee engagements.
“We are thrilled with the demand and support we have seen from new and existing sponsors. There is clearly excitement around this strategy and the benefits it can bring, especially in the current environment,” said Kevin McMahon, managing director who leads capital raising and business development for the credit business. from KKR.
KKR has deployed more than $6 billion in 54 ABF investments globally since 2016 through a combination of portfolio acquisitions, platform investments and structured investments. The firm has approximately $35 billion in ABF assets under management and a team of approximately 35 dedicated ABF investment professionals globally.
KKR’s ABF portfolio focuses on four key themes: consumer/mortgage finance, durable assets, small and medium enterprises and contractual cash flows. KKR has established lending businesses in partnership with experienced industry management teams to seize opportunities in lending markets that the company finds attractive. ABF’s platforms and partnerships today enable KKR to access lending opportunities across a wide range of industries, including aviation, real estate, auto finance, mortgages, royalties and leasing. equipment, among others.
KKR established its credit platform in 2004 and made its first private credit investment in 2005. Over the past 17 years, KKR has built one of the largest private credit platforms in the world with the ability to invest in the entire capital structure and liquidity spectrum. These capabilities are combined with KKR’s approach to proprietary sourcing, capital preservation and active portfolio management to seek long-term capital appreciation and attractive risk-adjusted returns. Today, KKR manages approximately $184 billion in credit assets worldwide, including approximately $71 billion in private credit, approximately $102 billion in leveraged credit and approximately $10 billion in investments as of March 31, 2022. KKR has a team of around 170 people. professionals in nine cities in seven countries, including approximately 90 private credit investment professionals globally.
KKR is a leading global investment firm providing alternative asset management solutions as well as capital markets and insurance solutions. KKR aims to generate attractive returns on investment by following a patient and disciplined investment approach, employing world-class people and supporting the growth of 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 pension, life insurance 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 more information about KKR & Co. Inc. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220713005151/en/
Julia Kosygina and Miles Radcliffe-Trenner
KKR Asia Pacific
+852 3602 7335
Wei Jun Ong
+65 6922 5813
[email protected] EMEA
Alastair Elwen/Sophia Johnston
Finsbury Glover Hering
+44 20 7251 3801
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
SECTOR KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE
Copyright BusinessWire 2022.
PUBLISHED: 07/13/2022 07:00 / DISK: 07/13/2022 07:02
Copyright BusinessWire 2022.