Investment powerhouse KKR has secured over $850 million for its second opportunistic real estate credit fund, aiming to capitalize on high-quality lending opportunities across the U.S. and Western Europe.
The fund, known as KKR Opportunistic Real Estate Credit Fund II (ROX II), will fuel a strategy focused on senior loans and real estate securities, positioning KKR as a major force in the shifting landscape of commercial real estate financing.
A Prime Moment for Real Estate Credit
With rising interest rates reshaping property valuations, KKR sees an opportunity-rich environment for real estate credit investments.
“We believe this is a great time to invest in real estate credit,” said Matt Salem, KKR partner and head of real estate credit.
“The asset class offers attractive absolute and relative returns, driven by the chance to lend on high-quality, well-located assets at conservative leverage levels.”
The fund will target first mortgages backed by institutional sponsors in major markets while also leveraging KKR’s leading role in commercial mortgage-backed securities (CMBS) investments.
