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 ground of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid

July 13 (Reuters) – International Investment agency KKR & Co Inc (KKR.N) on Wednesday shut its initial asset-backed finance fund with about $2.1 billion from traders who are ever more turning to collateral-centered cash flows with eye-catching yields to beat market volatility.

KKR’s Asset-Dependent Finance Associates fund drew from a varied group of new and present buyers, such as general public and corporate pensions, sovereign wealth resources and professional banking companies, and about $150 million from KKR.

The fund aims to supply funds to international non-public credit score instruments backed by money and challenging assets.

“Desire (for non-public credit score cash) has been pushed by global bank deleveraging, the want for quickly and subtle credit rating solutions and the lack of ability of classic funds to deliver them,” handling directors who oversee the asset-backed finance (ABF) financial commitment technique at KKR stated.

KKR has so far deployed far more than $6 billion across 54 ABF investments globally since 2016 by a mix of portfolio acquisitions, system investments and structured investments, in accordance to a statement.

The business proven its credit system in 2004, and produced its first private credit score expense the year right after.

As of March 31, it was managing just about $184 billion of credit score belongings globally, which includes about $71 billion in personal credit history.

Reporting by Mehnaz Yasmin in Bengaluru Modifying by Shinjini Ganguli

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