KKR's private credit platform has scaled to $300 billion in assets under management, driven by growth since its acquisition of Global Atlantic in early 2021 and strong appetite for direct lending and asset-based finance, according to comments made at the Barclays 24th Annual Global Financial Services Conference on Tuesday, September 15, 2026.
Chris Sheldon, KKR's co-head of credit and capital markets, said the firm now deploys capital across a global platform of 250 professionals based in 12 cities across 10 countries. The credit book includes $143 billion in leveraged credit, comprising liquid traded corporate bonds and asset-backed securities, while total private credit stood at approximately $141 billion — split between $91 billion in asset-based finance and roughly $50 billion in corporate private credit covering direct lending and junior debt.
Since closing the remaining 37% stake in Global Atlantic, KKR has seen capital rise 50% and management fees climb 32%, with year-to-date fee growth running in double digits. Credit AUM has grown roughly 35% since the firm's 2024 Investor Day.
Private investment-grade transactions are up 104% from the full prior year, Sheldon said, though he cautioned that the label still obscures the composition of the segment. He noted that the bulk of private IG exposure is actually asset-based or high-grade asset-based finance rather than traditional senior secured corporate debt.
On direct lending, KKR reported about $40 billion in originations and more than $80 billion in private investment-grade transactions originated or placed year-to-date. Default rates over the past few years have run around 4% to 5% annually, Sheldon said, and software exposure in the direct lending book sits at roughly 20%, below the market average of 25%.
Sheldon pointed to a massive funding gap opening up in AI-related infrastructure as one of the most significant growth vectors. Hyperscaler capital expenditure is forecast at $7.6 trillion over the next five years against a direct lending market that totals about $1.9 trillion, implying a potential financing shortfall of roughly $6 trillion in that sector alone.
Asia was another focal point. Sheldon described the region as reminiscent of Europe two to three decades ago, with 80% of financings still executed by banks rather than alternative lenders. He estimated private credit demand in Asia could reach about $800 billion.
Fixed-income investors rotating out of core strategies are seeking additional yield, Sheldon said, with a typical shift of 5% into private investment-grade commands a spread premium of 150 to 200 basis points over comparable public credit.
At KKR's non-traded business development company, K-FIT, redemption requests remain well below the 5% quarterly limit and represent less than 1% of overall credit AUM.
Sheldon also highlighted the compound-return dynamics of the strategy. "If you're earning high single digits or double-digit 10% type cash on cash, and you're reinvesting that, you're just compounding and doubling every seven years," he said. "I don't think enough people are talking about that shift in the market."
KKR shares closed at $102.27, up 1.18%, after the conference. The firm raised its dividend for a sixth consecutive year, with the current yield at 0.76%.
For the trailing twelve months, KKR reported revenue growth of 21%, return on equity of 11%, and diluted EPS of $3.13.
