KKR has raised $28bn (£20.6bn) in capital in the first quarter of this year, with more than half of the fundraising driven by its credit and liquidity segment.
The alternative asset manager’s credit and liquidity strategies attracted $15bn in organic new capital in the first quarter, and $69bn over the last twelve months, according to its latest financial results, indicating investor demand for the asset class persists despite warnings of market turmoil and elevated risks.
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KKR’s credit inflows in the first quarter were primarily driven by activity within high grade asset-based finance and leveraged credit, CLO issuances and the firm’s insurance arm Global Atlantic.
Its credit and liquidity assets amount to $329bn, an increase of two per cent quarter-over-quarter and 16 per cent year-over-year.
The credit segment consists of $144bn of leveraged credit, $92bn of asset-based finance, $49bn of corporate private credit (including $39bn of direct lending), $8bn of strategic investments and $36bn of liquid strategies.
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Despite positive quarterly fundraising, returns on KKR’s credit strategies recorded a slight dip of one per cent in the first quarter, but the firm’s leverage credit strategy is still up five per cent and its alternative credit up four per cent over the last twelve months
KKR’s credit and liquidity segment represents over 40 per cent of the firm’s overall assets, which currently stand at $758bn, up 14 per cent year-over-year. Meanwhile, the firm’s fee paying assets amount to $615bn, up 17 per cent year-over-year.
KKR recorded adjusted net income (ANI) of $1.2bn in the quarter, up 21 per cent year-over-year. ANI stood at $4.6bn over the last twelve months, up five per cent year-over-year.
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