Investment firm KKR has raised $850m (€809.4m) for its latest opportunistic real estate credit strategy.
KKR said it will use the capital raised for its Opportunistic Real Estate Credit Fund II (ROX II) and related separate accounts to invest in senior loans and real estate securities in the US and Western Europe.
Matt Salem, partner and head of real estate credit at KKR, said: “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.
“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.”
Joel Traut, partner and head of originations for real estate credit at KKR, said: “Our extensive borrower relationships, built over the past decade, have enabled us to continue our disciplined deployment into an attractive market.
“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.”
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