Finance
KKR raises $6.5 billion for asset-backed financing
Published by Global Banking & Finance Review®
Posted on July 30, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 30, 2025
2 min readLast updated: January 22, 2026
KKR raises $6.5 billion for asset-backed financing, offering alternatives to traditional loans. The ABF market is projected to reach $9 trillion by 2029.
(Reuters) -Investment giant KKR said on Wednesday it had raised $6.5 billion to provide asset-backed financing, as companies and investors seek out credit alternatives beyond traditional loans.
Asset-backed financing refers to loans backed by assets such as mortgages or royalties that have predictable cash flows. Such loans do not rely solely on a borrower's creditworthiness.
KKR said it had hauled in $5.6 billion for a fund, named KKR Asset-Based Finance Partners II, and about $1 billion from separate accounts focused on the same type of investments.
These funds give borrowers access to loans they might not get from banks, as traditional lenders have been pulling back from riskier loans due to strict regulations. The funds also offer firms such as KKR exposure to investments with consistent returns.
"The $6 trillion ABF market, expected to top $9 trillion by 2029, remains undercapitalized despite its rapid growth," KKR's Global Head of Private Credit, Daniel Pietrzak, said.
The latest fund attracted commitments from a wide base of investors, including pensions, sovereign wealth funds, insurers, asset managers and family offices, the company said.
KKR launched its ABF in 2016. It manages more than $74 billion in ABF assets under management.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Devika Syamnath)
Asset-backed financing refers to loans backed by assets such as mortgages or royalties that have predictable cash flows. These loans do not rely solely on a borrower's creditworthiness.
KKR raised a total of $6.5 billion for asset-backed financing, which includes $5.6 billion for a fund and about $1 billion from separate accounts.
The latest fund attracted commitments from a diverse range of investors, including pensions, sovereign wealth funds, insurers, asset managers, and family offices.
The $6 trillion asset-backed financing market is expected to exceed $9 trillion by 2029, indicating significant growth potential.
Traditional lenders have been pulling back from riskier loans due to strict regulations, which has created opportunities for alternative financing solutions like those offered by KKR.
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