(Bloomberg) — KKR & Co. raised about $3.3 billion for its latest special situations fund, exceeding its $3 billion target, two people with knowledge of the matter said.
The New York-based firm started marketing the pool, its second focused on special situations, in late 2014 after deploying the first vehicle more quickly than it expected, said the people, who asked not to be named because the details havent been announced. KKR finished collecting $2 billion for the first fund in January 2014.
A spokeswoman for KKR declined to comment on the new fund.
The special situations team, run by New York-based Nat Zilkha and San Francisco-based Jamie Weinstein,provides debt or equity to companies that have distressed capital structures or are undergoing events such as restructurings or mergers. Between 40 percent and 50 percent of backers in the new fund are new clients to KKR, Scott Nuttall, the firms head of global capital and asset management, said on a February conference call with investors and analysts.
The first fund was producing a 7 percent annualized return and was valued at 1.2 times cost as of Dec. 31, compared with a 15 percent annualized return and 1.2 times cost a year earlier, regulatory filings show.
KKRs special situations team, which is part of the firms larger $34 billion credit operation, has invested in European vending machine operator Selecta Group, portfolios of container ships, German soccer club Hertha Berlin, hospice-care provider Amedisys Inc. and Indonesian food business TPS Group, among others.
KKR, run by Henry Kravis and George Roberts, oversaw $120 billion in private equity holdings, credit assets, real estate and hedge funds as of Dec. 31.
