KKR’s first asset-based finance fund raises $2.1 bln

Trading information and facts for KKR & Co is displayed on a display on the floor of the New York Inventory Trade (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid

July 13 (Reuters) – Worldwide Investment organization KKR & Co Inc (KKR.N) on Wednesday shut its 1st asset-backed finance fund with about $2.1 billion from buyers who are ever more turning to collateral-primarily based hard cash flows with attractive yields to beat marketplace volatility.

KKR’s Asset-Primarily based Finance Associates fund drew from a numerous group of new and present buyers, including community and company pensions, sovereign wealth money and industrial banking institutions, and about $150 million from KKR.

The fund aims to deliver funds to worldwide personal credit instruments backed by financial and really hard belongings.

“Demand (for private credit rating funds) has been driven by worldwide bank deleveraging, the have to have for rapidly and refined credit methods and the inability of common money to offer them,” handling administrators who oversee the asset-backed finance (ABF) investment system at KKR explained.

KKR has so much deployed a lot more than $6 billion across 54 ABF investments globally because 2016 by way of a mixture of portfolio acquisitions, platform investments and structured investments, in accordance to a assertion.

The company established its credit platform in 2004, and manufactured its to start with non-public credit score investment decision the 12 months just after.

As of March 31, it was controlling virtually $184 billion of credit history property globally, like about $71 billion in private credit.

Reporting by Mehnaz Yasmin in Bengaluru Editing by Shinjini Ganguli

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