KKR has closed its non-traded US mortgage REIT, KKR Real Estate Finance Trust (KREF).
The vehicle, which invests in performing commercial real estate debt, has around $838m (€791m) of equity capital available to make investments.
Participants in the equity placement included several institutional investors, as well as KKR and its employees.
The vehicle has a portfolio of 22 US investments.
Matt Salem, co-head of KKR’s real estate credit business, said that, given “secular changes altering the real estate debt capital markets”, the firm sees attractive opportunities to invest in US real estate credit.
“In addition to the evolving regulatory landscape,” it said, “our existing relationship with borrowers, intermediaries and financing providers allows us to compete effectively for transactions and deliver attractive risk-adjusted returns to KKR and our investors.”
KREF has a further $1bn of existing borrowing capacity across its lending facilities.
KREF, the platform’s first investment vehicle, is a balance-sheet lender focused on transitional senior loans, subordinate debt and preferred equity collateralised by commercial real estate assets.
It has also invested in non-investment-grade commercial mortgage-backed securities.