KKR Lending Partners raises $1.34 billion for senior loan investments

By Toni Weeks

San Luis Obispo, Calif., April 16 – KKR announced it has closed the KKR Lending Partners II LP, a $1.34 billion fund focused primarily on privately originated senior loans.

The fund, which is the successor to KKR Lending Partners I LP, which completed its investment period in December, received strong backing from a diverse group of new and existing investors, including public pensions, insurance companies, private banking platforms, family offices and individual investors.

According to a press release, KKR’s direct lending strategy invests in privately negotiated transactions, seeking to capture the illiquidity premium in order to earn strong risk-adjusted returns versus the syndicated loan market.

“The lending landscape is being reshaped by a variety of factors, including geopolitical change, macroeconomic factors and the regulatory environment, and we believe we are well positioned to drive high-quality, originated deal flow for our direct lending business,” co-portfolio manager Erik Falk said in the release.

The fund began soliciting third-party capital last year, holding its first close in June 2014 and investing shortly thereafter, the release noted.

The global investment firm is based in New York.

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