Global private equity major KKR said it closed its second private credit fund at $2.24 billion.
The vehicle – KKR Private Credit Opportunities II – will focus on private corporate debt and mezzanine lending, financial assets, hard assets and structured credit.
The Limited Partners (LPs) in this fund include 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.
The firm said its second private credit fund had exceeded target, and was more the twice the size of predecessor fund – KKR Mezzanine Partners I L.P – which closed in September 2011 with $1 billion in capital commitments. Its first fund had completed its investment period in March 2015.
Its global credit business is led by Chris Sheldon and Nat Zilkha, respectively, and has $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 with the latest vehicle, KKR’s private opportunistic credit strategy manages approximately $5.0 billion in capital.
Its 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, it said in a statement.
“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.