KKR closed its new commercial mortgage-backed securities (CMBS) fund at $950 million in committed capital, according to an announcement from the $11.8 billion real estate unit at the New York firm.
KKR Real Estate Credit Opportunity Partners II will build on the strategy of its predecessor fund, RECOP 1, focused on purchasing junior tranches of new issue conduit CMBS. KKR’s purchase of CMBS B-Pieces is as an eligible third-party purchaser subject to new risk retention regulations that took effect in December 2016. The fund also may buy non-risk retention conduit CMBS . . .
Unlock this article instantly, along with the rest of our premium content and daily, weekly and monthly newsletters. We offer pay-as-you-go monthly subscriptions and discounted annual subscriptions with additional benefits: access to Alternatives Watch Research articles and our Annual Investor Compendium.