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

Investing details for KKR & Co is exhibited on a screen on the floor of the New York Inventory Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid

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July 13 (Reuters) – International Financial commitment company KKR & Co Inc (KKR.N) on Wednesday shut its first asset-backed finance fund with about $2.1 billion from buyers who are progressively turning to collateral-primarily based income flows with appealing yields to beat market place volatility.

KKR’s Asset-Dependent Finance Associates fund drew from a various group of new and existing buyers, which includes community and company pensions, sovereign prosperity resources and industrial banking companies, and about $150 million from KKR.

The fund aims to deliver cash to global non-public credit rating instruments backed by financial and tricky belongings.

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“Demand (for private credit score cash) has been driven by worldwide financial institution deleveraging, the have to have for speedy and innovative credit solutions and the incapacity of regular money to give them,” running administrators who oversee the asset-backed finance (ABF) financial investment technique at KKR said.

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

The corporation proven its credit platform in 2004, and created its 1st private credit investment decision the yr following.

As of March 31, it was handling practically $184 billion of credit assets globally, which includes about $71 billion in private credit history.

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Reporting by Mehnaz Yasmin in Bengaluru Enhancing by Shinjini Ganguli

Our Criteria: The Thomson Reuters Belief Ideas.

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