KKR Closes $850M Opportunistic Real Estate Credit Fund
KKR has closed its second real estate credit fund, KKR Opportunistic Real Estate Credit Fund II (ROX II), raising over $850 million. ROX II is focused on making opportunistic investments in senior loans and real estate securities, primarily targeting markets across the U.S. and Western Europe.
The strategy will focus on pursuing first mortgages secured by high-quality properties, typically owned by institutional sponsors in major markets. Additionally, KKR’s established position as the largest third-party purchaser of risk retention CMBS B-Pieces and its dedicated special servicer, K-Star, will enhance the fund’s ability to navigate and invest in real estate securities.
“We believe it is a great time to invest real estate credit,” said Matt Salem, partner and head of real estate credit at KKR. “The asset class offers attractive absolute and relative returns, underpinned by the opportunity to lend on high-quality, well-located assets at conservative leverage levels on re-set property values.”
Since 2015, KKR’s real estate credit strategy has originated $43.4 billion of loans and invested $14 billion in commercial mortgage-backed securities as of September 2024.