KKR has raised $6.5bn for its latest asset-backed finance (ABF) strategy, as the global investment firm continues to scale its presence in private credit amid growing demand for alternative lending solutions, according to a report by Reuters.
The capital raise includes $5.6bn for KKR Asset-Based Finance Partners II, the firm’s second dedicated fund in the strategy, alongside an additional $1bn in separately managed accounts with a similar investment focus.
The vehicle is designed to provide non-bank lending backed by tangible, cash-generative assets – such as royalties, mortgages, leases, and other forms of collateralised revenue streams. The strategy seeks to capitalise on the retreat of traditional lenders from risk-weighted assets due to tighter regulatory requirements, offering borrowers a private-market alternative for accessing capital.
KKR’s ABF platform now manages over $74bn in assets, with the firm having first entered the space in 2016. The latest fundraise attracted a diverse mix of global institutional investors, including pension funds, sovereign wealth funds, insurers, family offices, and asset managers, underscoring broad investor appetite for income-generating credit strategies.
