KKR Looks Favorably on Non-Transaction Credit Fund Opportunities Amid BDC Pressure

LootboxPhobia · 2026-03-11T21:45:22+00:00

KKR's publicly traded private credit fund faces pressure, with its stock price down 29%. CFO Robert Lewin stated that non-traded instruments may contain greater opportunities. He mentioned that returns on direct loans are affected, especially due to pressure on subordinate exposures.

LootboxPhobia

2026-03-11 21:45:22

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Investing.com – KKR’s publicly traded private credit fund is under pressure, but the company’s CFO Robert Lewin said Wednesday that the firm sees greater opportunities in non-traded instruments.

Known as Business Development Companies (BDCs), the publicly traded stocks have fallen, and redemption requests for the non-traded versions have increased as investors express concerns about exposure to the credit market and the software sector. KKR FSK Capital Corp’s stock has declined 29% so far this year.

Lewin stated at the Royal Bank of Canada Capital Markets Global Financial Institutions Conference in New York that KKR’s minority capital, approximately $17 billion in direct loans, is structured as BDCs. He said $14 billion of that is in FSK, “which has recently come under pressure mainly due to some subordinate exposures.”

The company doesn’t have much capital in the private BDC space, but Lewin said KKR believes there could be real opportunities in this area.

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