KKR Looks to Boost Private Credit Bets in Asset-Based Financing

KKR & Co. is looking to grow its asset-based private lending business to capitalize on a retreat by banks and more traditional market participants in the wake of the coronavirus pandemic that has led to mis-priced risk.

Loans in the roughly $4.5 trillion private asset-based finance market can be secured by collateral ranging from homes and vehicles to inventory and equipment. The sector, which is expected to grow to $6.9 trillion over the next five years, is also appealing as it offers credit exposure that’s largely disconnected from more broadly held types of debt, according to KKR.

“We’re trying to ...