KKR private debt fundraising inched down in 2016

The dip came amid a record overall fundraising year for the firm, which grew its assets under management by $10bn.

While KKR raised a record $29 billion in 2016, the firm’s private debt fundraising trended slightly down from 2015, it said during its fourth-quarter earnings call on Thursday.

In 2016, the firm brought in $12.6 billion for its public markets platform, which encompasses the firm’s alternative credit funds and collateralised loan obligations, according to the earnings statement. This marks a slight dip from $12.9 billion raised in 2015.

Scott Nuttall, head of global capital and asset management group at KKR, said on the call that the opportunistic credit and direct lending funds were among the best performers.

This came “despite market and geopolitical volatility” in 2016, he added.

The capital raising pushed the firm’s assets under management up by 8 percent, from $120 billion at the end of 2015 to $130 billion by the end of 2016.

KKR deployed a total of $2.5 billion in the last quarter and $12.2 billion across the entire year. The company’s economic net income was $383 million for the fourth quarter and $794 million for the year.

, Nuttall said he could not predict whether the firm would be able to match 2016’s fundraising in 2017, but added he is optimistic about its current fundraising docket – particularly its second opportunistic credit fund.

As of December 2016, the firm pulled in $414.71 million for its KKR Private Credit Opportunities Partners II with a $1.5 billion target, according to PDI data. 

The asset manager had nearly $38 billion in dry powder as of 31 December, the earnings document shows.

KKR is an alternative asset manager investing alternative credit and private equity across the US, Europe, Asia and the Middle East.