ASSET MANAGEMENT

Overview

KKR Asset Management ("KAM") is KKR’s premier asset management platform that offers products and return profiles to satisfy a broad range of fixed-income investment mandates. KAM is led by William C. Sonneborn. KAM has a team of more than 30 investment professionals focused solely on U.S. and non-U.S. credit markets. Leveraging the experience and creativity of these resources, KAM is able to offer tailored programs for institutional investors in accordance with such investors’ investment criteria, targeted return and risk tolerance.

Today KAM manages debt investment vehicles including, KKR Financial Holdings LLC (NYSE: KFN) and a number of separate accounts. The KAM platform continues to expand with the introduction of a mezzanine business led by Frederick M. Goltz.

Rigorous Investment Process
We have a deliberate, collaborative, and highly disciplined investment process. For each proposed investment, our investment committee reviews the detailed investment memorandum and related financial projections for the proposed portfolio company.

Key Investment Factors and Principles
Our fixed income team conducts a rigorous and ongoing analysis of current and potential investments that focuses on five major factors: credit standards, management quality, valuation, relative asset class valuation, and our views on macroeconomic conditions. Building on these factors, we are guided by the following key principles:

  • Credit Philosophy: We have an intense focus on it as part of our ongoing analysis of each investment opportunity — this includes anticipating credit performance by analyzing the competitive environment and industry dynamics.
  • Fundamental Investing vs. Momentum: We are driven by company and investment fundamentals, rather than “momentum” driven investments.
  • Multi-Asset Class Strategy: We invest in multiple classes of assets that allow us to rotate sectors as industry and economic factors dictate to generate attractive, risk-adjusted returns under our operating and tax model.