KKR Raises $104 Million for Lending Initiative

Kohlberg Kravis Roberts & Co. has raised its first $100 million or so to support its new lending strategy.

After Buyouts reported last week that the firm was redoubling its efforts in the upper-mid-market senior lending business (subscribers click here; see the Reuters version of the story here), following the close in October of a $1 billion mezzanine fund, the firm disclosed in SEC reports on Friday that it had closed on $102 million for a fund called KKR Lending Partners LP and separately had closed on $2 million for a fund called KKR Lending Partners Private Investors LP.

It was not immediately clear what distinguishes the two funds, apart from slightly different names and way different fundraising tallies, or what strategies the funds would pursue. A spokeswoman for the firm did not respond immediately to requests for comment. Of course, firms typically refuse to discuss fundraising because of federal rules limiting their marketing, a practice that is coming under growing criticism.

Neither fund listed a target, calling the goals “indefinite.” The firm does not appear to be using a placement agent.

The new funds are part of KKR Asset Management, which the firm established in 2004 to invest in secured credit, bank loans and high yield securities and alternative assets such as mezzanine financing, distressed investing and structured finance. KAM has assets of $15 billion, including the publicly traded lending partnership KKR Financial Holdings LLC.

Steve Bills is a senior editor at Buyouts Magazine. Any opinions expressed here are entirely his own. Follow him on Twitter @Steve_Bills. Follow Buyouts tweets @Buyouts. For information on how to subscribe, contact Greg Winterton at greg.winterton@thomsonreuters.com.

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