KKR has held the final closing of KKR Lending Partners II, a USD1.34 billion fund focused primarily on privately-originated senior loans. KKRLP II is the successor fund to KKR Lending Partners I which exited its investment period in December 2014.
The Fund, for which KKR began soliciting third party capital in 2014, received strong backing from a diverse group of new and existing investors, including public pensions, insurance companies, private banking platforms, family offices and individual investors.
Erik Falk, Co-Portfolio Manager of the Fund, says: “We are very pleased that we were able to attract a nice mix of new and existing KKR direct lending investors to the Fund. We have a strong pipeline and are very optimistic about the opportunity set.”
KKR’s Direct Lending platform is part of KKR’s USD26.9 billion credit business. The Direct Lending strategy invests in privately-negotiated transactions with a focus on the top of a company’s capital structure, seeking to capture the illiquidity premium in order to earn strong risk-adjusted returns versus the syndicated loan market.
Chris Sheldon, Co-Portfolio Manager for KKRLP II, says: “The lending landscape is being reshaped by a variety of factors, including geopolitical change, macroeconomic factors, and the regulatory environment – and we believe we are well positioned to drive high-quality, originated deal flow for our direct lending business.”
