KKR & Co so far has raised more than US$2 billion from institutional investors in its biggest US direct lending evergreen fund, according to a person with knowledge of the matter.
The KKR US Direct Lending Evergreen Fund was launched in March 2023 to focus on the senior secured debt of upper middle- market companies, or those with earnings of US$50 million to US$100 million or more, according to a filing.
Evergreen funds are gaining in popularity among private credit managers as a way to raise capital. They let the fund manager raise and invest money continually, while giving each investor flexibility on when they can redeem all or a portion of their stake. That compares to more traditional draw-down fund structures where institutions typically make one commitment upfront and their capital is locked up for several years.
KKR has launched three funds with the same evergreen structure for institutional investors, including a levered US vehicle and a European version that have raised over $4 billion, said the person, who asked not to be identified discussing private matters.
A representative from KKR declined to comment.
KKR’s direct lending strategy, including evergreen funds and other structures, has raised more than US$10 billion over the last 12-months, according to the person. Recent direct lending deals invested in by KKR vehicles include a US$2.8 billion financing to help finance Clarience Technologies’ acquisition of Safe Fleet and a US$2.34 billion unitranche debt facility for MB2 Dental Solutions for acquisitions and growth. BLOOMBERG
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