KKR & Co.’s co-chief executive officer Scott Nuttall said it was likely that the alternative asset manager would eventually start trading private credit, following early efforts by Apollo Global Management Inc. to create a market for less liquid debt.
“The benefits are probably clear,” Nuttall said in an interview Wednesday at the Bernstein Annual Strategic Decisions Conference. “It probably attracts more capital over time. I think more transparency tends to be a good thing.”
At the same time, he said, they don’t want to erode the premium investors get precisely because the assets are harder to trade.
“It’s likely to happen over time for some types of private credit loans,” he said. “Maybe direct lending could lend itself to it, but it’s early.”
Concerns about private credit are leading to more lender-friendly deals, including higher fees and less leverage, Nuttall said.
The firm continues to see opportunity in asset-based finance, he said. It currently has about $92 billion in such assets, which includes debt backed by credit cards, mortgages and other assets.
KRR had $758 billion of assets under management, including $329 billion in credit, as of the end of the first quarter.
Written by: Allison McNeely @Bloomberg
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