KKR Raises $3.35B For Second Special Situations Fund

Apr 5 2016 | 8:08pm ET

Global alternative investment manager KKR has raised $3.35 billion for its second special situations fund.

The new vehicle, named the KKR Special Situations Fund II, will focus on credit investments in distressed or event-driven opportunities. The firm’s special situation strategy invests across the capital structure in both privately negotiated transactions and in the secondary markets.

Fund II enjoyed strong backing from both new and existing global investors, noted KKR in a statement, including public and corporate pensions, sovereign wealth funds, insurance companies, foundations, endowments, private banking platforms, family offices and individual investors.

The new fund did not have a target or hard cap. 

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

KKR created its special situations strategy in 2009, and has raised approximately $9.1 billion of capital across funds, separate accounts, and firm capital. It raised $2 billion in commitments for its first fund in December 2013, the majority of which was deployed outside the United States. The firm’s special situations platform is part of KKR’s $33.8 billion credit business. 

KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. The firm had $120 billion in assets under management as of December 31, 2015. 

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