A Flexible Approach to Risk-Adjusted Returns
ROX II will be highly adaptable, pursuing a mix of loans and securities to maximize risk-adjusted returns while prioritizing downside protection.
“We’ve designed this strategy to seize the best opportunities across our platform, aiming to generate strong returns with significant current income,” Salem added.
Joel Traut, head of originations for real estate credit at KKR, emphasized the growing role of private capital in the evolving real estate financing landscape.
“As demand for commercial real estate loans continues to grow, private lenders like KKR will play an increasingly critical role,” he said.
KKR’s Real Estate Credit Footprint
Since 2015, KKR’s real estate credit division has originated $43.4 billion in loans and invested $14 billion in CMBS securities.
The firm’s approach includes:
- First mortgage loan originations on high-quality properties
- CMBS B-piece investments, where KKR holds a leading position in risk retention purchases
- Strategic partnerships with institutional borrowers to maintain disciplined deployment in high-demand markets
As traditional lenders pull back, firms like KKR are stepping in, leveraging deep borrower relationships to deploy capital effectively in a shifting market.
Legal counsel for the fund was not immediately disclosed.
