KKR plans to offer a closed-end fund that invests in loans and other fixed-income securities issued by below-investment grade companies.
The KKR Global Credit Opportunities Fund filed a preliminary prospectus Friday with the Securities and Exchange Commission. It will be managed by KKR Asset Management, part of KKR Financial Holdings, the publicly traded specialty finance arm of KKR & Co.
According to the prospectus, the fund will invest primarily in first- and second-lien, high-yield corporate debt instruments of varying maturities as well as CDOs, CBOs, CLOs, bank obligations, U.S. government securities, and debt issued by or on behalf of states, territories, and possessions of the U.S., preferred securities and trust preferred securities; structured securities, and when-issued securities and forward commitments.
It may also invest in equity securities incidental to the purchase or ownership of fixed-income securities.
The prospectus does not indicate how much money the fund seeks to raise and there is no information on fees.
As of Dec. 31, 2010, KKR had had $14.8 billion of corporate credit assets under management.