Insight

KKR racks up about $2.1bn for inaugural finance fund

KKR Asset-Based Finance Partners will back credit investments that are backed by large and diversified pools of financial and hard assets, with attractive risk-adjusted returns.

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  • The fund’s LP base includes public and corporate pensions, sovereign wealth funds, commercial banks, insurance companies, asset managers, and family offices
  • KKR has deployed more than $6 billion across 54 ABF investments globally since 2016
  • KKR established its credit platform in 2004, and made its first private credit investment in 2005

KKR has closed its debut finance fund at about $2.1 billion. KKR Asset-Based Finance Partners will commit capital globally to privately originated and negotiated credit investments that are backed by large and diversified pools of financial and hard assets, with attractive risk-adjusted returns.

ABFP’s limited partners include public and corporate pensions, sovereign wealth funds, commercial banks, insurance companies, asset managers, and family offices. KKR invested approximately $150 million alongside external investors through its balance sheet and employee commitments.

“The $4.5 trillion ABF market is one of the most compelling and fastest-growing opportunities within our private credit business today,” said Dan Pietrzak and Matthieu Boulanger, partners and co-heads of private credit at KKR. “At the same time, investors are increasingly looking for solutions that can deliver collateral-based cash flows with attractive yield and downside protection in today’s highly volatile and inflationary environment. Through the close of ABFP, we are pleased to play a leading role in meeting this demand while also serving the financing needs of consumers and businesses globally.”

KKR has deployed more than $6 billion across 54 ABF investments globally since 2016 through a combination of portfolio acquisitions, platform investments and structured investments. KKR has approximately $35 billion in ABF assets under management.

KKR’s ABF portfolio focuses on four key themes: consumer/mortgage finance, hard assets, small-medium enterprise and contractual cash flows.

KKR established its credit platform in 2004, and made its first private credit investment in 2005. Today, KKR manages approximately $184 billion of credit assets globally, including approximately $71 billion in private credit, approximately $102 billion in leveraged credit and approximately $10 billion in strategic investments, as of March 31, 2022.