KKR Income Opportunities Fund seeks to dynamically allocate across credit instruments to capitalize on changes in relative value among corporate credit investments and manage against macroeconomic risks. The Fund is designed to offer investors:
- Investment experience of KKR Asset Management LLC, the Fund’s investment adviser, which is a subsidiary of Kohlberg Kravis Roberts & Co. L.P., a leading global investment firm with a 37-year history of leadership, innovation and investment excellence
- Potential for attractive levels of current income through monthly distributions
- A targeted portfolio investing primarily in bank loans and high yield securities
- KKR Asset Management’s consistent approach and robust credit investment process that seeks to adapt credit strategies to market conditions
KKR Asset Management LLC serves as KKR Income Opportunities Fund’s investment adviser (the “Adviser”). Launched in 2004, the Adviser is a subsidiary of Kohlberg Kravis Roberts & Co. L.P. (together with the Adviser and its other affiliates, “KKR”). The Adviser’s investment teams, which are organized by industry, invest across the capital structure with the goal of achieving attractive risk-adjusted returns and protecting capital. There can be no assurance that the Fund’s investment objectives of seeking a high level of current income with a secondary objective of capital appreciation will be achieved or that the Fund’s investment program will be successful.
An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program. The Fund is designed as a long-term investment and not as a trading vehicle. The Fund’s investment policy of investing primarily in bank loans and high yield securities, including special situations opportunities, involves certain risks. Investors could lose some or all of their investment.
The securities in which the Fund will invest may be rated below investment grade. Such securities are regarded as having predominately speculative characteristics with respect to an issuer’s capacity to pay interest and repay principal and are commonly referred to as “high yield” securities or “junk” bonds.
For a summary of the risks associated with an investment in the Fund, please see the “Risk Factors” section of the prospectus. The Fund intends to use leverage. Leverage involves the use of various financial instruments or borrowings in an attempt to increase the return of an investment. The use of leverage involves risk, including the potential for higher volatility and greater declines of the Fund’s net asset value, and fluctuations of dividends and other distributions paid by the Fund. For additional risk information, see the “Leverage” section of the prospectus.
Risks: For information regarding the risks associated with an investment in the Fund, including, No operating history, Investment and market risk, Market discount risk, Leverage risk, Fixed-Income Instruments risk, Senior Loans risk, Credit risk, Subordianted and Unsecured or Partially Secured Loans risk, Mezzanie securities risk, Below Investment Grade Instruments risk, Special Situations risk, Short selling risk, Prepayment risk, Credit Derivatives risk, Derivatives risk, Income risk, Regulatory risk, Risks related to the Fund’s clearing broker and central clearing counterparty, Structured Products risk, Repurchase Agreements risk, Reverse Repurchase Agreements and Dollar Rolls risk, Swap risk, Options and Futures risk, Exchange-Traded Funds risk, Counterparty risk, Counterparty and Prime Brokerage risk, Lender Liability risk, Distressed Debt, Litigation, Bankruptcy and Other Proceedings, Convertible Securities risk, When-Issued Securities and Forward Commitments, Risk of Investments in Equity Securities or Warrants Incidental to Investments in Loans and Fixed-Income Instruments, U.S. Government Debt Securities risk, Non-U.S. Securities risk, Foreign Currency risk, Eurozone risk, Legal and Regulatory risk, Event Driven Investing, Valuation risk, Liquidity risk, Inflation/Deflation risk, Conflicts of Interest risk, Tax risk, Uncertain Tax Treatment, Complex Transactions/ Contingent Liabilities/Guarantees and Indemnities, Dependence on Key Personnel risk, Material Risks of Significant Methods of Analysis, Non-Diversification Risk, Market Developments, Market Disruptions from Natural Disasters or Geopolitical risks, Government Intervention in the Financial Markets, Portfolio Turnover risk, Anti-Takeover Provisions, Risks Relating to Fund’s RIC Status, RIC-Related Risks of Investments Generating Non-Cash Taxable Income, please see “Investment objective, policies and risks” in the Fund’s prospectus.