Henry Kravis, Co-Founder of KKR & Co, has said he sees no systemic risk in the private credit market despite recent scares involving US loan losses and corporate restructurings, according to a report by Bloomberg. Speaking at an industry event in Berlin, Kravis said that “not one penny of private credit” figured in the major bankruptcies of Tricolor Holdings and First Brands Group, which have stirred concern over the asset class.
While Kravis did acknowledge that firms operating in private credit with limited experience could get into problems, he argued that these challenges were idiosyncratic, rather than systemic.
His comments come as regulatory and market-watching bodies increase scrutiny of private-credit financing flows and the role non-bank lenders play in the broader financial ecosystem.
