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KR has closed its opportunistic real estate credit fund II (ROX II) with over $850m (£675m) in commitments. The flagship private fund invests in senior loans and real estate securities across the US and Western Europe, targeting attractive risk-adjusted returns.

    With a flexible mandate, ROX II focuses on first mortgages secured by high-quality properties owned by institutional sponsors in major markets. This strategy allows for conservative leverage levels on re-set property values, making it an attractive option for investors.

    "We believe real estate credit offers compelling absolute and relative returns," said Matt Salem, partner and head of real estate credit at KKR. "Our ROX II strategy is designed to deliver attractive returns with significant current income and a focus on downside protection."

    KKR's extensive borrower relationships have enabled the firm to continue its disciplined deployment into an attractive market. Joel Traut, partner and head of originations for real estate credit at KKR, added that private capital will play a growing role in commercial real estate as loan demand increases.

    Since 2015, KKR's real estate credit strategy has originated $43.4bn of loans and invested $14bn in commercial mortgage-backed securities.