KKR Acquires $373 Million Portfolio of Prime Auto Loans

Rhea-AI Summary

KKR has purchased a $373 million portfolio of prime auto loans from Synovus Bank. The investment aligns with KKR's asset-based finance strategy and brings their ABF assets under management to approximately $42 billion.

Positive

• KKR's purchase of the auto loan portfolio strengthens their asset-based finance strategy.
• The investment brings KKR's ABF assets under management to approximately $42 billion.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- KKR, a leading global investment firm, today announced that private credit funds and accounts managed by KKR have purchased a $373 million portfolio of prime auto loans from Synovus Bank.

This investment aligns with KKR’s asset-based finance (ABF) strategy, which focuses on privately originated and negotiated credit investments that are backed by large and diversified pools of financial and hard assets, with attractive risk-adjusted returns. KKR has made 65 ABF investments globally since 2016 through a combination of portfolio acquisitions, platform investments and structured investments. The firm has approximately $42 billion in ABF assets under management and a team of more than 50 professionals directly involved in the ABF effort globally.

“We continue to see opportunities to provide capital to the banking community and believe that the combination of our scale, deep ABF investment expertise and ability to execute efficiently positions us to be a partner of choice for these types of transactions,” said Dan Pietrzak, Global Head of Private Credit at KKR.

“There is an immense opportunity for scaled private capital investment across the ABF space, especially as traditional lenders increasingly focus on optimizing their balance sheets and increasing liquidity,” said Avi Korn and Chris Mellia, Managing Directors at KKR.

KKR made the investment through its private credit funds and accounts.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at www.kkr.com and on Twitter @KKR_Co.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230808240427/en/

Media:

Julia Kosygina

+1 212-750-8300

Media@kkr.com

Source: KKR

FAQ

What did KKR purchase?

KKR purchased a $373 million portfolio of prime auto loans from Synovus Bank.

What is KKR's asset-based finance strategy?

KKR's asset-based finance strategy focuses on privately originated and negotiated credit investments backed by large and diversified pools of financial and hard assets.

How many ABF investments has KKR made since 2016?

KKR has made 65 ABF investments globally since 2016.

How much ABF assets does KKR have under management?

KKR has approximately $42 billion in ABF assets under management.