KKR Raises $4 Billion for Special Credit Opportunities

KKR has raised $4 billion in new capital to invest in credit opportunities created by the recent market volatility. The new capital includes $2.8 billion through its KKR Dislocation Opportunities Fund LP and just over $1.1 billion from separately managed accounts committed to the same investment opportunities (together the “DOF”).

The DOF operates within KKR’s $67.6 billion credit business and will invest in opportunities across public and private credit markets over an initial 18-month investment period. Jennifer Box and Blaine MacDougald are the co-portfolio managers of the dislocation opportunities strategy. Specific areas of interest include secondary market credits, corporate credits, and real estate credits in North America and Europe.

The $4 billion of new capital was raised in an eight week period. The DOF held its final close on May 19th and included commitments from over 20 new institutional investors to KKR and over 40 new investors to KKR Credit. KKR and its employees have committed approximately $447 million of capital to the DOF.

“KKR’s integrated global platform empowers us to access a deep pipeline of opportunities and recent market volatility has created the chance to invest in high-quality companies at attractive prices and with strong downside-protection,” said Chris Sheldon, the head of leveraged credit at KKR. “We are grateful for the trust of our investors which enabled us to immediately deploy a significant amount of capital into the March sell-off.”

KKR (NYSE: KKR) makes private equity, fixed income and other investments in companies in North America, Europe, Asia and the Middle East. KKR was founded in 1976 and in addition to its New York headquarters has offices in 19 cities around the world.

Private Equity Professional | June 2, 2020

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