KKR CREDIT INCOME FUND (KKC)
Hello All, could i have your thoughts on KKC please. Regards John
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Answer
Hi John,
The KKR Credit Income Fund (KKC) pays monthly distributions and is currently forecast to yield 8.6% over the next 12-months – attractive when rates look set to fall, e.g. the RBNZ slashed rates 0.5% on Wednesday.
The KKC invests across the KKR funds which hold a mixed bag of credit. Around 56% of it is traded credit while the rest is private credit. A solid income option that we can’t really fault, similar to Perpetual Credit Income Fund (PCI) that we own in the income portfolio.
We think these blended portfolio’s that include traded and private credit are a better option that pure private credit. There was an interesting article in the AFR yesterday, as Metrics became the owner of Pacific Hunter, which owns Rockpool, Spice Temple and Sake restaurants, plus brands such as Fratelli Fresh, El Camino Cantina and Beerhaus after the PE owners (Quadrant) handed the keys to the lenders, with the group grappling with total debt of $449m – much of lent by Metrics.
