KKR private credit fund exceeds 5% redemption cap to meet investor withdrawals
KKR's non-traded business development company KKR FS Income Trust Select has agreed to meet all investor withdrawal requests after quarterly repurchase demands narrowly exceeded its 5% redemption limit, according to a report any Bloomberg.
KKR's non-traded business development company, KKR FS Income Trust Select (K-FITS), has agreed to honor all investor withdrawal requests after repurchase demands narrowly surpassed its 5% redemption cap, according to Bloomberg. The fund, which has $996 million in net assets, received requests to repurchase 5.06% of its outstanding shares for the quarter ending September 29.
Despite the cap, K-FITS will fulfill the requests entirely, citing sufficient liquidity to accommodate all withdrawals. This move comes amid heightened redemption pressure in the non-traded BDC market, driven by concerns over lending standards and exposure to AI-vulnerable software companies. While redemption demand eased across the broader direct lending market valued at $1.8 trillion, K-FITS saw an increase from 3.43% in the previous quarter to 5.06%.
KKR's other private credit fund, KKR FS Income Trust (K-FIT), faced lower redemption pressure, with investors seeking to withdraw 1.53% of shares, down from 1.65% previously. Both funds employ similar investment strategies but are managed separately. K-FIT boasts an 8.64% annualized net return since its launch in March 2023, while K-FITS has delivered 8.64% over the same period.
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