KKR Raises Over $850 Million for Opportunistic Real Estate Credit Strategy
KKR has announced the final close of its KKR Opportunistic Real Estate Credit Fund II (ROX II), securing over $850 million in commitments. The fund focuses on opportunistic investments in senior loans and real estate securities across the U.S. and Western Europe.
The strategy will pursue first mortgages secured by high-quality properties owned by institutional sponsors in major markets. KKR's position as the largest third-party purchaser of risk retention CMBS B-Pieces and its dedicated special servicer, K-Star, will support securities investments.
Since 2015, KKR's real estate credit strategy has originated $43.4 billion of loans and invested $14 billion in commercial mortgage-backed securities. The firm's global real estate business employs over 140 dedicated investment and asset management professionals across 16 offices.
KKR ha annunciato la chiusura finale del suo KKR Opportunistic Real Estate Credit Fund II (ROX II), assicurandosi oltre $850 milioni in impegni. Il fondo si concentra su investimenti opportunistici in prestiti senior e titoli immobiliari negli Stati Uniti e in Europa occidentale.
La strategia perseguirà ipoteche primarie garantite da proprietà di alta qualità possedute da sponsor istituzionali in mercati principali. La posizione di KKR come il più grande acquirente terzo di CMBS B-Pieces con retention del rischio e il suo servicer speciale dedicato, K-Star, sosterranno gli investimenti in titoli.
Dal 2015, la strategia di credito immobiliare di KKR ha originato $43,4 miliardi di prestiti e investito $14 miliardi in titoli garantiti da mutui commerciali. L'azienda globale di immobili di KKR impiega oltre 140 professionisti dedicati agli investimenti e alla gestione degli asset in 16 uffici.
KKR ha anunciado el cierre final de su KKR Opportunistic Real Estate Credit Fund II (ROX II), asegurando más de $850 millones en compromisos. El fondo se centra en inversiones oportunistas en préstamos senior y valores inmobiliarios en los EE. UU. y Europa Occidental.
La estrategia buscará hipotecas de primer rango garantizadas por propiedades de alta calidad propiedad de patrocinadores institucionales en mercados principales. La posición de KKR como el mayor comprador externo de CMBS B-Pieces con retención de riesgo y su servicer especial dedicado, K-Star, apoyarán las inversiones en valores.
Desde 2015, la estrategia de crédito inmobiliario de KKR ha originado $43.4 mil millones en préstamos e invertido $14 mil millones en valores respaldados por hipotecas comerciales. El negocio global de bienes raíces de la firma emplea a más de 140 profesionales dedicados a inversiones y gestión de activos en 16 oficinas.
KKR는 KKR Opportunistic Real Estate Credit Fund II (ROX II)의 최종 마감을 발표하며 $850 백만 이상의 약정을 확보했습니다. 이 펀드는 미국과 서유럽의 시니어 대출 및 부동산 증권에 대한 기회 투자에 중점을 둡니다.
이 전략은 주요 시장에서 기관 후원자가 소유한 고품질 자산에 담보된 1순위 모기지를 추구합니다. KKR의 위험 보유 CMBS B-Pieces의 최대 제3자 구매자로서의 위치와 전담 특별 서비스 제공업체 K-Star는 증권 투자를 지원할 것입니다.
2015년 이후, KKR의 부동산 신용 전략은 $43.4억 달러의 대출을 발생시켰고, $14억 달러를 상업용 모기지 담보 증권에 투자했습니다. 이 회사의 글로벌 부동산 사업은 16개 사무소에서 140명 이상의 전담 투자 및 자산 관리 전문가를 고용하고 있습니다.
KKR a annoncé la clôture finale de son KKR Opportunistic Real Estate Credit Fund II (ROX II), sécurisant plus de $850 millions d'engagements. Le fonds se concentre sur des investissements opportunistes dans des prêts seniors et des titres immobiliers aux États-Unis et en Europe de l'Ouest.
La stratégie visera des premières hypothèques sécurisées par des propriétés de haute qualité détenues par des sponsors institutionnels sur des marchés majeurs. La position de KKR en tant que plus grand acheteur tiers de CMBS B-Pieces avec retention de risque et son servicer spécial dédié, K-Star, soutiendront les investissements en titres.
Depuis 2015, la stratégie de crédit immobilier de KKR a généré $43,4 milliards de prêts et investi $14 milliards dans des titres adossés à des hypothèques commerciales. L'entreprise mondiale de biens immobiliers de KKR emploie plus de 140 professionnels dédiés aux investissements et à la gestion d'actifs dans 16 bureaux.
KKR hat den endgültigen Abschluss seines KKR Opportunistic Real Estate Credit Fund II (ROX II) bekannt gegeben und über $850 Millionen an Zusagen gesichert. Der Fonds konzentriert sich auf opportunistische Investitionen in Senior-Darlehen und Immobilienwertpapiere in den USA und Westeuropa.
Die Strategie wird sich auf erste Hypotheken konzentrieren, die durch hochwertige Immobilien gesichert sind, die von institutionellen Sponsoren in wichtigen Märkten gehalten werden. KKR's Position als größter Dritter Käufer von Risiko-Retention-CMBS-B-Pieces und sein dedizierter Spezialservicer, K-Star, werden die Wertpapierinvestitionen unterstützen.
Seit 2015 hat die Immobilienkreditstrategie von KKR $43,4 Milliarden an Darlehen ausgegeben und $14 Milliarden in gewerbliche Hypothekenanleihen investiert. Das globale Immobiliengeschäft des Unternehmens beschäftigt über 140 engagierte Fachleute für Investitionen und Asset-Management in 16 Büros.
- Raised over $850 million for ROX II fund
- Strong track record with $43.4B in loan originations since 2015
- $14B invested in CMBS since 2015
- Position as largest third-party purchaser of CMBS B-Pieces
- Extensive global presence with 140+ real estate professionals
- None.
Insights
This
Three key aspects make this development particularly significant for KKR's business model and potential revenue growth:
- The fund's flexible mandate across both loans and securities creates multiple revenue streams - origination fees from direct lending, ongoing interest income, and potential gains from securities trading
- KKR's position as the largest third-party purchaser of CMBS B-Pieces provides unique market insights and first-look opportunities at distressed assets, creating a competitive advantage in risk assessment
- The strategy's focus on institutional sponsors in major markets suggests a high-quality loan book that could better weather market stress, while the current reset in property values provides an additional cushion for new investments
The scale of KKR's real estate platform, with 140+ professionals across 16 offices and
The emphasis on conservative leverage levels and high-quality assets indicates a defensive positioning that could prove valuable given current market uncertainties. This approach, combined with KKR's special servicing capabilities through K-Star, positions them well to manage potential distress while maintaining strong risk-adjusted returns.
ROX II is KKR’s flagship private fund investing across the full breadth of KKR Real Estate Credit’s opportunistic capabilities. The strategy has a flexible mandate to pursue attractive risk-adjusted returns across both loans and securities. Loan originations will focus on first mortgages secured by high-quality properties owned by institutional sponsors and located in major markets within
“We believe it is a great time to invest real estate credit. The asset class offers attractive absolute and relative returns, underpinned by the opportunity to lend on high-quality, well-located assets at conservative leverage levels on re-set property values,” said Matt Salem, Partner and Head of Real Estate Credit at KKR. “We have designed our ROX II strategy with a flexible mandate to participate in what we view as the best risk-adjusted opportunities we see across our platform, with the objective of delivering attractive returns coupled with significant current income and a focus on downside protection.”
“Our extensive borrower relationships, built over the past decade, have enabled us to continue our disciplined deployment into an attractive market,” said Joel Traut, Partner and Head of Originations for Real Estate Credit at KKR. “We believe private capital will play an increasingly important role in the commercial real estate market as loan demand continues to climb, and this positions us very well to deliver attractive risk-adjusted opportunities for our investors.”
KKR’s global real estate business invests thematically in high-quality real estate through a full range of scaled equity and debt strategies. KKR’s more than 140 dedicated real estate investment and asset management professionals across 16 offices apply the capabilities and knowledge of KKR’s global platform to deliver outcomes for clients and investors. Since 2015, KKR’s real estate credit strategy has originated
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. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
1 Based on the face amount retained on conduit and SASB CMBS deals from January 1, 2017 – September 30, 2024; Source: Commercial Mortgage Alert (accessed October 2024).
2 As of September 2024
View source version on businesswire.com: https://www.businesswire.com/news/home/20250214912583/en/
Media
Miles Radcliffe-Trenner or Lauren McCranie
(212) 750-8300
media@kkr.com
Source: KKR
FAQ
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