KKR Credit Income Fund (ASX: KKC)

The KKR Credit Income Fund aims to provide Australian and New Zealand investors with attractive, risk-adjusted returns and access to a diversified portfolio of income generating alternative credit investments

WHY INVEST

The KKR Credit Income Fund has been established to provide investors with an opportunity to access global credit investment opportunities sourced through proprietary KKR channels and an investment into KKR Managed Funds, which are generally only open to institutional investors such as pension funds and sovereign wealth funds. The Fund seeks to deliver an income stream as well as to achieve attractive long-term capital appreciation over a full market cycle.

Product Disclosure Statement

Overview

The Trust Company (RE Services) Limited (ABN 45 003 278 831) (Responsible Entity) as responsible entity of KKR Credit Income Fund (ARSN 634 082 107) (Fund) has lodged a Product Disclosure Statement dated Thursday, 19 September 2019 (Original PDS) and a Supplementary PDS dated 9 October 2019 (Supplementary PDS) (together, the PDS) with the Australian Securities and Investments Commission (ASIC) copies of which are available on this website. The PDS contains details relating to the offer of approximately 300,000,000 new fully paid ordinary units (Units) in the Fund (Offer) and listing of the Fund on ASX.

The KKR Credit Income Fund is a newly constituted managed investment scheme, which has been registered with ASIC. Following completion of the Offer, it is proposed that the Fund will be listed on the ASX under the ASX code KKC. The Fund will provide investors in Australia and New Zealand with an opportunity to access global credit investment opportunities sourced through proprietary KKR channels. The fund assets will be invested in the KKR Managed Funds (as described in the PDS), which are investment funds managed by KKR’s credit investment teams.

The Responsible Entity is offering Units for subscription to raise a minimum of $200 million and up to $750 million for the Fund. Under the Offer, the Responsible Entity may accept Oversubscriptions to raise up to an additional $175 million. The Subscription Price for Units is $2.50 per Unit.

The Offer comprises a Cornerstone Offer, a Broker Firm Offer and a General Offer to investors in Australia and New Zealand.

This website allows you to view the following online:

  • PDS for Australian and New Zealand investors
  • Corporate governance documentation
  • Media in relation to the Fund

Capitalised terms used in this website have the meaning given in the Original PDS unless they are given a different meaning in the Supplementary PDS.

Introduction to The Global Credit Opportunities Fund and European Direct Lending Fund

What is KKC?

Why KKR?

Key Benefits of the Offer

The key benefits of investing in the Fund include:

  • Attractive Target Distribution: the Fund aims to deliver distribution yield of 4% - 6% per annum (net of fees and expenses incurred by the Fund, but before tax), paid quarterly once the Fund has deployed the Offer Proceeds in the KKR Funds (which is expected to occur by March 2020). The Target Distribution is only a target and may not be achieved. 
  • Attractive Target Return: The investment strategies of the KKR Funds aim to protect capital and generate strong risk adjusted returns through the market cycle, with the Fund seeking to deliver a medium-term average total return of 6% - 8% per annum (net of fees and expenses incurred by the Fund, but before tax). The distribution yield over a given period may be lower than the total return in this period to the extent that the total return includes unrealised gains.
  • Diversified exposure: Low expected correlation of the Fund’s assets to Australian and global equities means that the return profile of the Fund should not move in line with the return profile of Australian and global equity markets. This means that investors should be less exposed to a downturn in global equity markets
  • Alignment of interests with Unitholders: The Fund will aim to directly or indirectly invest in the KKR Managed Funds and the investment strategies they pursue on a pari-passu basis with KKR's institutional investors and KKR's own capital through its balance sheet commitments and employee investments.
  • KKR product access: access to global credit investment opportunities sourced through proprietary KKR channels. The Fund assets will be invested into KKR Managed Funds, which are generally only open to institutional investors such as pension funds and sovereign wealth funds.
  • Highly experienced KKR Credit team: the KKR Credit team has comprehensive credit investing expertise, with approximately 120 KKR Credit investment professionals in locations spanning eight countries who are dedicated to sourcing, assessing and managing credit investments on a global basis.

Information in the PDS may need to be updated from time to time. As set out in the PDS, any updated information that is not considered materially adverse to investors will be made available on this website. Please follow the links below to view the updated information:

1. Updated Information – Changes to the Compliance Committee of the Responsible Entity

A paper copy of the updated information will be provided, or an electronic copy made available, free of charge to any investor who requests a copy by contacting the Trust Offer Information Line between 8.30am and 5.30pm (Sydney time), Monday to Friday.

Key Dates

FAQ's

About the Offer

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About the Fund

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Risks

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Fee Structure

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Marketing

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About the Manager

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Other questions

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Contact details

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