Private equity giant Kohlberg Kravis Roberts has agreed to buy hedge fund Avoca Capital, giving it an $8 billion foothold in the European credit space.
Terms of the deal were not disclosed. The acquisition will nearly quadruple KKR's European credit assets following closing in the first quarter of next year.
"We believe the European credit space offers significant opportunity," KKR co-CEOs Henry Kravis and George Roberts said. "Avoca has a very strong track record, an entrepreneurial management team and excellent capabilities that are complementary to ours in European senior and liquid credit."
Avoca co-founders Alan Burke and Dónal Daly will join KKR as part of the deal, with the former serving as head of its European credit platform and the latter as a senior adviser.