KKR has raised $6.5 billion to invest in privately originated credit opportunities backed by significant pools of financial and hard assets. This includes $5.6 billion in KKR Asset-Based Finance Partners II (ABFP II) and nearly $1 billion from separately managed accounts focusing on similar investments.
ABFP II has received strong support from a wide range of investors, including public and corporate pensions, sovereign wealth funds, private banks, and family offices. KKR established its Asset-Based Finance (ABF) strategy in 2016 and has since grown to manage over $74 billion in ABF assets with a dedicated team of approximately 50 ABF professionals.
KKR’s ABF portfolio focuses on four main themes: Consumer/Mortgage Finance, Commercial Finance, Hard Assets, and Contractual Cash Flows. The firm operates 18 captive ABF platforms, allowing for proprietary investment sourcing. KKR’s diverse investment strategy spans industries such as aviation, real estate, automotive finance, and equipment leasing.
Over the past 20 years, KKR has built one of the largest private credit platforms globally, managing approximately $254 billion in credit assets, including $117 billion in private credit and $129 billion in leveraged credit.
KEY QUOTES:
“The $6 trillion Asset-Based Finance (ABF) market, projected to exceed $9 trillion by 2029, is one of the most dynamic opportunity sets today, yet it remains relatively undercapitalized. ABFP II will help fill this gap by providing long-term capital to the real economy and offering investors a chance to diversify their portfolios with high-quality non-corporate collateral-backed cash flows.”
Daniel Pietrzak, Partner and Global Head of Private Credit at KKR
“Our extensive experience and global scale in ABF uniquely positions us to capitalize on the dynamic opportunities we see across various sectors and geographies. At over 2.5x the size of its predecessor, ABFP II’s success is a testament to the confidence our investors place in our team to deliver compelling risk-adjusted returns. We are grateful for their continued support.”
Varun Khanna, Avi Korn, and Chris Mellia, global co-heads of ABF at KKR
