KKR Says Public Private Credit Funds Face Pressure

Summary：CFO notes returns weighed by risk exposure while private vehicles offer more opportunities.

KKR's Chief Financial Officer Robert Lewin stated that the company's publicly listed private credit funds are currently facing pressure on returns, mainly due to market concerns over credit risk and exposure in the software industry.

The private debt funds, known as Business Development Companies (BDCs), have been performing weakly in the public market. Among them, FS KKR Capital Corp's stock has dropped approximately 29% this year.

Lewin said that around $17 billion of KKR's direct lending assets are allocated through the BDC structure, with about $14 billion concentrated in FSK, which has been a drag on short-term investment returns.

He also noted that the company sees greater growth opportunities in non-listed private credit instruments.

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Written byTraderKnows

Created date:2026-03-11 14:58

Last Updated:2026-03-11 15:49

Independent Analysis: Manually researched and fact-checked by the TraderKnows Compliance Team, based on public regulatory records.

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Debenture（Bonds）

Bonds or debentures refer to debt securities issued by governments, corporations, banks, or other entities through legal processes. These securities are a promise made to creditors to repay the principal and interest on a specified date in order to raise funds.