KKR Asset Management ("KAM") is KKR’s premier asset management platform that offers products and return profiles to satisfy a broad range of fixed-income investment mandates. KAM is led by William C. Sonneborn. KAM has a team of more than 30 investment professionals focused solely on U.S. and non-U.S. credit markets. Leveraging the experience and creativity of these resources, KAM is able to offer tailored programs for institutional investors in accordance with such investors’ investment criteria, targeted return and risk tolerance.

Today KAM manages separate accounts as well as two debt investment vehicles. The KAM platform continues to expand with the introduction of a mezzanine business. Led by Frederick M. Goltz, KKR Mezzanine Partners is KAM’s newest venture.

KKR Financial Holdings LLC (NYSE:KFN) — is a publicly traded specialty finance company that focuses on making investments that build long-term value and generate competitive risk-adjusted returns using moderate leverage. KFN's core business strategy focuses on investing in corporate debt, including senior secured loans, mezzanine loans, and high yield securities with a particular emphasis on debt issued by large capitalization firms with broad geographic and product offerings.

Strategic Capital Fund (SCF) — is a private credit hedge fund that invests primarily in corporate credit transactions across the capital structure.

Rigorous Investment Process
We have a deliberate, collaborative, and highly disciplined investment process. For each proposed investment, our investment committee reviews the detailed investment memorandum and related financial projections for the proposed portfolio company.

Key Investment Factors and Principles
Our fixed income team conducts a rigorous and ongoing analysis of current and potential investments that focuses on five major factors: credit standards, management quality, valuation, relative asset class valuation, and our views on macroeconomic conditions. Building on these factors, we are guided by the following key principles:

1. Credit Philosophy: We have an intense focus on it as part of our ongoing analysis of each investment opportunity — this includes anticipating credit performance by analyzing the competitive environment and industry dynamics.
2. Fundamental Investing vs. Momentum: We are driven by company and investment fundamentals, rather than “momentum” driven investments.
3. Multi-Asset Class Strategy: We invest in multiple classes of assets that allow us to rotate sectors as industry and economic factors dictate to generate attractive, risk-adjusted returns under our operating and tax model.

 

 

 

“KKR Asset Management should be a growth engine for us going forward. We believe there is a significant opportunity to leverage our intellectual capital and longstanding relationships with our private equity investor base and other investors to drive this business over the next several quarters.”

William C. Sonneborn
Member, KKR