A $2.1 billion fund, the first of its kind for asset-based financing (ABF) investments, has been closed by the multinational investment firm KKR.
New and seasoned investors supported the fund, including family offices, public and corporate pension funds, sovereign wealth funds, commercial banks, insurance providers, and asset managers. Additionally, KKR contributed about $150 million of its own money to the new investment vehicle.
According to Dan Pietrzak and Matthieu Boulanger, partners and co-heads of private credit at KKR, the ABF market, which has a global market value of US $4.5 trillion, has grown to be a popular choice for investors seeking enticing rates in the present economic climate.
Through platform investments, structured investments, and portfolio acquisitions since 2016, KKR has invested more than US $6 billion across 54 ABF ventures.
Around $35 billion in ABF assets are managed by the company globally. It also has a 35-person team of experts that work exclusively on ABF investments.