KKR closes $3.3b global special situations fund

"The number of credit assets trading at distressed levels has been increasing steadily for several months," Jamie Weinstein, KKR's co-head of special situations, said in a statement. "Coupled with the wave of redemptions in the distressed and opportunistic credit fund space, pricing environment for risk is meaningfully more attractive than in prior years."

Henry McVey, KKR's head of global macro and asset allocation - and whose views are therefore not an indicator of investment strategy - last year identified debt-driven restructurings as one of his five key investment opportunities for 2016. China figures heavily in this thinking, with the economic slowdown expected to deliver openings for distress and special situations investors.

KSSF II is supported by new and existing global investors, including public and corporate pensions, sovereign wealth funds and insurance companies. The fund was understood to be seeking a raise of $2.5-3 billion. The firm's first KSSF closed at $2 billion in 2014, more than double the original target. It is now fully committed and exited its investment period.

The KKR special situations platform was formed in 2009 and has since raised about $9.1 billion through funds, separate accounts and balance sheet capital. The special situations team includes 29 investment professionals across Hong Kong, India, Singapore, Australia, the US and the UK.

KKR demonstrated its interest in distressed Asian assets earlier this year by forming a partnership focused on the sector with China Orient Asset Management and China Orient Summit Capital. The collaboration is expected to invest largely in real estate, which accounts for 16% of total lending in China, or $3.1 trillion in outstanding debt.

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• Topics
• Credit/Special Situations
• Fundraising
• KKR
• Special Situations
• GPs
• Asia
• China