KKR holds $1.1b final close for real estate fund

KKR, a leading global investment firm, has held a $1.1 billion final close for KKR Real Estate Credit Opportunity Partners (RECOP). The fund focuses on generating attractive risk-adjusted returns for investors through the purchase of junior tranches of CMBS.

RECOP exceeded its target capital raise and received strong backing from a diverse group of global investors, including public pensions, insurance companies, and family offices.

RECOP focuses primarily on investing in newly issued CMBS B-pieces as an eligible third-party purchaser subject to the new risk retention regulations which took effect in Dec. 2016. Earlier this year, KKR negotiated and purchased the first CMBS transaction subject to risk retention. The fund has since closed on six additional transactions representing a face amount of $517 million and approximately $225 million of invested equity, in aggregate. The fund’s seven closed investments through August 2017 make it the most active CMBS