Private Credit Drama Forces BlackRock, KKR to Tackle Losing BDCs

The troubled private credit funds, by most any measure, are a sliver of the assets of investing giants KKR & Co., BlackRock Inc. and Apollo Global Management Inc.

Yet as the firms’ most outward-facing vehicles during the $1.8 trillion market’s turbulent 2026, they’ve become outsized reputational stains as investors assess problems across the industry. Now, each asset manager is taking steps to address them, albeit with different tools.

At $758 billion KKR, the persistent issues dogging its publicly traded FS KKR Capital Corp., a $12.3 billion fund, reached the highest levels of the firm, according to a person ...