Frequently Asked Questions

As an ASX-listed managed investment scheme, Units can be bought and sold on the ASX via your broker. The ASX ticker is KKC.

The Trust’s investment objective is to provide Unitholders with an income stream as well as achieve attractive long-term capital appreciation over a full market cycle. The Trust targets a net total return of 6-8%[1] p.a. with a target net cash yield of 4-6%[2] p.a. through the market cycle.

[1] Estimated medium-term average total return net of fees and expenses incurred by the Trust, before tax. Target returns are based on the Manager’s belief about the returns that may be achievable on the investments pursued by the KKR investment strategies. There is no guarantee that the facts on which such assumptions are based will materialise as anticipated.

[2] Net of fees and expenses incurred by the Trust, but before tax. The Target Distribution is only a target and may not be achieved. Actual distributions will be monitored against the Target Distribution. The Target Distribution will be formally reviewed at least annually (as at the end of each financial year) and any change in Target Distribution will be notified by way of ASX announcement as required.

The Manager invests in two strategies managed by the credit investment teams of KKR. These strategies are comprised of the Opportunistic Credit strategy and the European Direct Lending strategy.

The Opportunistic Credit strategy focuses on traded credits which typically includes loans, bonds or other debt securities or instruments. These are issued by larger companies and are syndicated to a group of lenders. These securities and instruments can be traded in the secondary market.

The European Direct Lending strategy focuses on private credits which are typically bilateral loans between a lender and a borrower with no or limited syndication. These securities are not typically traded in the secondary market.

For the latest allocation to each underlying strategy, please see the latest Monthly Investor Update. The Manager expects to allocate up to 50% of the Trust’s assets into the European Direct Lending strategy.

The Trust’s track record is published monthly in the Monthly Investment Updates.

The Trust’s Investment Committee has extensive experience analysing, investing in, and managing the types of investments which reflect the Trust’s Investment Strategy.

It is the Responsible Entity’s intention to pay monthly distributions[1] and to distribute 100% of the distributable income of the Trust on an annual basis.

[1] Distributions will change from Quarterly to Monthly in July 2021. The first monthly distribution is expected to be paid in August 2021.

Yes. The Manager intends to hedge currency risk back to the base currency of the Trust, which is the Australian Dollar.

While the Trust will not use leverage as part of its investment approach or investment strategy, the Trust does intend to borrow to manage its liquidity, including financing to enable the Trust to undertake its investment activities and to meet the short term working capital requirements of the Trust.

The KKR Managed Funds which the Trust is expected to invest in may also borrow on a temporary basis for cash management purposes. Investors should consider the risks relating to the use of leverage described in Section 8.26 of the PDS.

No. The Responsible Entity does not intend to establish a DRP.

Under the Investment Management Agreement, the Manager will be entitled to:

1. a Management Base Fee of 0.88% per annum of the NAV of the Trust plus the net amount of GST of 0.022% (i.e. 0.902%, inclusive of GST), calculated and accrued monthly, and payable monthly in arrears out of the assets of the Trust; and;
2. a Management Performance Fee of up to 5.125% (inclusive of GST, less RITC) of net annualised return for a “Performance Period” multiplied by when certain conditions, including a performance hurdle, described in section 9.4.1.4 of the PDS are satisfied.

Yes. The Responsible Entity will release to the ASX and post to the Trust’s website a monthly statement of the net tangible asset (NTA) backing of its Units. The Responsible Entity may in the future elect to publish the NTA backing on a more frequent basis.

The Responsible Entity will also release to the ASX (and place on its website) reports, prepared by the Manager, to keep Unitholders informed about the current activities of the Trust, the performance of the Trust's Portfolio and the investment outlook. To receive notification of newly posted items, investors may subscribe for KKC updates.

The Trust’s NTA backing will be calculated and made available monthly on the Trust’s website and on the ASX. JPMorgan will also calculate this although it is not expected to differ from NAV per Unit.

The value of the Trust’s investments will be calculated by the KKR manager managing the relevant KKR strategy. The managers of each of the KKR strategies intend to engage an independent administrator to provide independent valuation and other administrative services for the relevant strategy.

The NAV of the European Direct Lending Fund (EDL) is issued 3-4 weeks after quarter-end, with KKR’s financial earnings. In some cases, the annual earnings may not be released until 5-6 weeks after quarter-end. As a result of this, the NAV of the Trust will likely reflect EDL valuations from the previous month-end or quarter-end.

KKR Australia Investment Management Pty Ltd is the manager of the Trust. It is a proprietary limited company incorporated in Australia and, is an affiliate of Kohlberg Kravis Roberts & Co. L.P. (KKR), and KKR Credit.

KKR is a leading global alternative investment firm. As of 31 March 2021, KKR had A$481.6 billion of assets under management, of which A$216.5 billion sits within KKR Credit^[1]. KKR has a global presence with offices in 20 cities across 4 continents, including Sydney, Australia.

[1] The KKR Credit group is comprised of KKR Credit Advisors (US) LLC, KKR Alternative Investment Management and KKR Credit Advisors (EMEA) LLP.