KKR Dislocation Fund Puts 78% of Capital in Private Assets (2)

A KKR & Co. fund created to take advantage of credit-market dislocations during the pandemic is devoting most of its capital to private assets in order to find high returns amid record-low yields.

The $2.8 billion Dislocation Opportunities Fund, initially a vehicle for buying up the wave of beaten-down corporate bonds and leveraged loans, is currently 78% private market investments like loans and other types of debt, preferred equity and structured equity -- according to a person familiar with the matter.

Funds that target distressed investments have run low on options as monetary and fiscal easing keeps borrowing costs ...