KKR Secures $6.5B to Scale Global Asset-Based Finance Platform

Key Takeaways

Sector: Asset-Based Finance (ABF).
Geography: United States.

Analysis

New York, USA – Global investment powerhouse KKR has successfully closed a $6.5 billion fundraise aimed at strengthening its asset-based finance (ABF) strategy across major international markets. This new capital infusion highlights the firm’s accelerating presence in one of the fastest-growing yet undercapitalized corners of global private credit.The fundraising round included $5.6 billion for the flagship fund, KKR Asset-Based Finance Partners II (ABFP II), and nearly $1 billion through separately managed accounts pursuing similar investment strategies. The firm is targeting opportunities in privately originated credit backed by diversified financial and hard assets, reinforcing its role as a major institutional player in the ABF sector.“The $6 trillion ABF market is expected to top $9 trillion by 2029,” said Daniel Pietrzak, Global Head of Private Credit at KKR. “ABFP II helps close the funding gap while offering institutional investors diversified exposure to non-corporate, collateralized cash flows.”ABFP II is more than double the size of its predecessor, reflecting growing institutional appetite for structured credit with lower correlation to traditional markets. The new fund received backing from a global mix of investors, including sovereign wealth funds, insurance companies, public pensions, private banks, and family offices.

KKR’s ABF platform, launched in 2016, has scaled significantly, managing over $74 billion in ABF assets with a global team of 50 professionals. The platform splits into two strategies: opportunistic and high-grade, offering tailored financing solutions across the capital structure. The fund’s mandate spans geographies and sectors, including aviation, real estate, consumer finance, auto loans, equipment leasing, and royalties.

With $254 billion in credit assets under management globally, KKR has built one of the world’s largest private credit ecosystems. Its ABF division focuses on four verticals: Consumer and Mortgage Finance, Commercial Finance, Hard Assets, and Contractual Cash Flows. This broad approach supports proprietary deal sourcing and execution via 18 captive ABF platforms worldwide.

Similar developments across the sector signal robust investor confidence in the asset-based lending space. In recent months, firms like Apollo Global Management and Blackstone have also committed billions to expand their ABF arms. Apollo recently closed a $4 billion vehicle for structured credit, while Blackstone grew its structured finance group by acquiring positions in equipment leasing and mortgage portfolios in Asia and Europe.

KKR’s move to scale its ABF strategy comes amid broader trends in private markets. With tightening bank regulations and higher interest rates globally, institutional investors are turning toward alternative credit with stronger collateral protection and yield resilience.

Disclosed limited partners include Border to Coast Pensions Partnership, which committed $208 million; the South Carolina Retirement System Investment Commission with a $100 million allocation; Los Angeles Fire and Police Pension System with $30 million; and Ohio School Employees Retirement System.

As capital continues to flow into ABF, KKR’s second flagship fund positions the firm to shape the next phase of global private credit, connecting institutional investors to emerging structured opportunities in both developed and emerging markets.