Global investment firm KKR has completed a $4 billion capital raise focused on investing in credit opportunities created by recent market volatility.
KKR raised $2.8 billion for its KKR Dislocation Opportunities Fund and over $1.1 billion from separately managed accounts committed to the same investment opportunities. KKR and its employees have committed approximately $447 million of capital to the Fund.
The entire capital raise took place over an eight week period. The KKR Dislocation Opportunities Fund 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. A major wealth management platform also contributed to the fundraising.
”The Fund and separately managed account commitments will operate within KKR’s $67.6 billion credit business and will have the ability to draw on the firm’s global network of resources and experience, including in private equity, infrastructure, and real estate, where appropriate,” said the compnay in a statement. ”They have a flexible mandate to invest in what is expected to be an evolving set of opportunities across public and private credit markets over an initial 18-month investment period.”
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“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, Head of Leveraged Credit. “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.”
Jennifer Box and Blaine MacDougald will serve as Co-Portfolio Managers of the Dislocation Opportunities strategy which will focus on investing in attractively priced credit risk in the secondary markets and providing liquidity and capital solutions to high-quality borrowers as they manage through the crisis resulting from COVID-19.
Investment themes include high-quality corporate credit and asset-backed and real estate credit in North America and Europe. The scale and deep sector expertise of KKR’s global platform enables differentiated speed of execution and the ability to invest across the capital structure.