K
KR has sealed the deal on its Opportunistic Real Estate Credit Fund II, a $850 million powerhouse that's poised to make waves in senior loans and real estate securities across the US and Western Europe. This behemoth of a fund is KKR's flagship private investment vehicle, leveraging the firm's expertise in opportunistic credit investing.

    With a flexible mandate to pursue attractive risk-adjusted returns, ROX II will focus on first mortgages secured by high-quality properties owned by institutional sponsors in major markets. KKR has built a reputation as the go-to mortgage lender for top-tier sponsors over the past decade, and this fund is set to capitalize on that momentum.

    The securities investments will tap into KKR's dominance as the largest third-party purchaser of risk retention CMBS B-Pieces and its dedicated special servicer, K-Star. With a global real estate business that invests thematically across a range of equity and debt strategies, KKR brings a wealth of expertise to the table.

    "We're in a sweet spot for real estate credit investing," says Matt Salem, Partner and Head of Real Estate Credit at KKR. "We've designed ROX II to participate in the best risk-adjusted opportunities we see, with a focus on delivering attractive returns, significant current income, and downside protection."

    KKR's extensive borrower relationships have given it a leg up in the market, allowing for disciplined deployment into an attractive landscape. As Joel Traut, Partner and Head of Originations for Real Estate Credit at KKR, notes, "Private capital will play an increasingly important role in commercial real estate as loan demand continues to climb – and we're well-positioned to deliver attractive risk-adjusted opportunities for our investors."