KKR Secures $7.2B Prime RV Loan Portfolio In Strategic Move With BMO Collaboration
Portfolio Pulse from Lekha Gupta
KKR & Co Inc (NYSE:KKR) has acquired a $7.2 billion super-prime RV loan portfolio from BMO Bank National Association, a part of BMO Financial Group. BMO will continue to service the loans and manage RV loan origination. BMO also purchased $6.4 billion in senior notes backed by the loans. The acquisition aligns with KKR's Asset-Based Finance strategy and adds diversification to its credit portfolio. KKR has $47 billion in ABF assets and a team of over 50 professionals. The investment was made through KKR's credit funds and accounts, with Kennedy Lewis Investment Management LLC also participating. KKR's AUM increased by 6% Y/Y to $528 billion in Q3, with $14 billion in new capital raised.
December 18, 2023 | 12:44 pm
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POSITIVE IMPACT
KKR's acquisition of a $7.2 billion RV loan portfolio from BMO supports its ABF strategy and may provide attractive risk-adjusted returns. KKR's AUM has grown to $528 billion, indicating a strong financial position.
The acquisition is a strategic move for KKR, likely to be viewed positively by investors as it diversifies the company's credit portfolio and is in line with its ABF strategy. The growth in AUM and the successful raising of new capital suggest a robust financial health, which could lead to a positive short-term impact on KKR's stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100