KKR & Co. (NYSE:KKR) is committing $300 million of its own capital to a private credit fund it co-manages with Future Standard, as the strategy faces pressure from rising loan defaults that contributed to a $560 million loss in the first quarter.
KKR Alternative Assets will buy up to $150 million of FS KKR Capital shares at $11 each through a tender offer and also invest $150 million in newly issued preferred stock, Bloomberg reported.
At the end of Monday’s market close KKR’s stock price was down 3.2%.
The BDC’s board of directors approved a $300 million share repurchase program, which is understood to be running for approximately one year. The program will expire on June 1, 2027. It can be extended or end sooner, depending on when the $300 million is reached. KKR agreed to waive its incentive fees for four quarters.
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