KKR’s Nuttall suggests new direct lending, private credit funds

Head of global capital and asset management Scott Nuttall also spoke about opportunities created by the pullback of traditional lenders in Europe. 

Kohlberg Kravis Roberts may begin raising follow-ups to its direct lending and private credit vehicles in 2014, head of Global Capital and Asset Management Scott Nuttall suggested in an earnings call on Thursday morning.

When asked about future product offerings, Nuttall cited data indicating that many of the firm’s direct lending and credit vehicles were approaching the end of their investment periods.

KKR’s direct lending vehicles had $194.5 million uncalled on $748.8 million in total commitments as of 31 December, according to its earnings report. The firm’s mezzanine fund, which is scheduled to conclude its investment period in August 2015, has $464.1 million uncalled on $987 million committed.  

“We maintained our active investment pace in both public and private markets,” Nuttall said on the call. “In public markets, if you look at the gross assets invested across all of our accounts … we invested $1.5 billion during the quarter and $4 billion over the [course of the] year.”

Assets managed by the firm’s public markets business, which includes its private debt and credit strategies, grew by 8.5 percent on the quarter to $30.5 billion, according to an earnings report. KKR closed its Special Situations Fund on $2 billion during the fourth quarter.

In addition to his comments on fundraising, Nuttall also spoke about the opportunities that will become available once the firm closes its acquisition of European credit firm Avoca later this year. The acquisition will enable KKR to expand its private credit and lending product offerings in Europe, where the pullback of traditional lending from banks has made it difficult for many companies to obtain financing.