KCOP (KKR Credit Opportunities Portfolio)
Class IKCOPX
Class I NAV1$24.31
Current Distribution Rate28.3%
1 As of April 17, 2024
2 The amount of the distributions that the Fund may pay, if any, is uncertain. The distribution rate shown may vary from the actual amount paid, due to whether month end fall on business days. The Fund may pay distributions in significant part from sources that may not be available in the future and that are unrelated to the Fund’s performance, such as return of capital.
Current distribution rate is expressed as a percentage equal to the projected annualized distribution amount (which is calculated by annualizing the current cash distribution per share without compounding), divided by the current net asset value. Annualized yields presented are calculated using the actual number of days within the stated period. The current distribution rate shown may be rounded as of February 29, 2024.
About KKR
KKR Credit Advisors (US) LLC (the “Advisor”) serves as the Fund’s investment advisor. Launched in 2004, the Advisor is a subsidiary of KKR & Co. Inc. (together with the Advisor and its other affiliates, “KKR”), a leading global investment firm with more than a 45-year history of leadership, innovation and investment experience. The Advisor’s investment teams, which are organized by industry, invest across the capital structure with the goal of protecting capital and achieving attractive risk-adjusted returns.
KKR Capital Markets LLC, FINRA Member, serves as the Fund's principal underwriter. KKR Capital Markets LLC is an affiliate of the Advisor.
Fund Objective and Strategy
The KKR Credit Opportunities Portfolio (“KCOP” or the “Fund”) seeks to provide investors differentiated access to income generating credit investment ideas via KKR’s global credit platform. The Fund seeks attractive risk-adjusted returns and current income.
The Fund seeks to deliver higher yield than traditional bond strategies. The interval Fund structure allows access to private credit which can be a source of yield.
KCOP provides individual investors access across the institutional KKR Credit platform for the first time through a single investment. The Fund allocates across opportunities in credit to seek the best relative value opportunities.
The Fund is a diversified credit solution that can be complementary to a traditional fixed income portfolio.
KKR and its employees have $3.5 billion invested in KKR Credit strategies.
Fund Facts
as of February 29, 2024
KKR Credit
as of December 31, 2023
A Leading Global Credit Platform
1 Includes legacy investments in KKR Financial Holdings LLC, a specialty finance vehicle listed on the New York Stock Exchange and various collateralized loan obligation vehicles
Performance
as of February 29, 2024
| 1-Month Return | QTD Return | 6-Month Return | YTD Return | Since Inception (Cumulative) |
|---|---|---|---|---|
| 1.62% | 6.38% | 8.38% | 2.71% | 32.88% |
Past performance is historical and not a guarantee of future results. Since Inception returns are annualized and based on the Class I Share inception date of 2/28/2020. Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when repurchased, may be worth more or less than their original cost and current performance may be lower or higher than the performance data quoted.
Portfolio Characteristics
as of January 31, 2024
Capital Structure
Asset Class
Geography |
|
|---|---|
| United States | 85.0% |
| Europe | 14.6% |
| Other | 0.4% |
Top 10 Sectors |
|
|---|---|
| Hotels, Restaurants & Leisure | 12.1% |
| Building Products | 8.3% |
| Financial Services | 7.3% |
| Software | 5.5% |
| Insurance | 5.4% |
| Media | 5.3% |
| Chemicals | 4.5% |
| Professional Services | 4.3% |
| Construction & Engineering | 4.0% |
| Machinery | 3.9% |
Top 10 Issuers |
|
|---|---|
| NCL | 2.8% |
| Drive DeVilbiss Healthcare | 2.3% |
| Varsity Brands | 2.2% |
| SPX FLOW | 2.2% |
| NEP Broadcasting | 2.1% |
| PSAV | 2.0% |
| Solera | 1.9% |
| Viking Cruises | 1.9% |
| TIBCO Software | 1.9% |
| National Financial Partners | 1.8% |
| Managed Assets | $953.5M |
| Leverage | 25.2% |
| Average Duration (years) 1 | 1.2 |
| Average Yield to Maturity 2 | 10.2% |
| Current Distibution Rate 3 | 7.9% |
Important Risk Disclosure: An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of non–payment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer’s ability to make principal and interest payments.
Borrowing to increase investments (leverage) will exaggerate the effect of any increase or decrease in the value of Fund investments.
Investments rated below investment grade (typically referred to as “junk”) are generally subject to greater price volatility and illiquidity than higher rated investments. As interest rates rise, the value of certain income investments is likely to decline. Senior loans are subject to prepayment risk. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions.
Changes in the value of investments entered for hedging purposes may not match those of the position being hedged.
The Fund may engage in other investment practices that may involve additional risks.
1 Loan durations are based on the actual remaining time until LIBOR is reset for each individual loan. Effective Duration is the change in the value of a fixed income security that will result from a 1% change in market interest rates, taking into account anticipated cash flow fluctuations from mortgage prepayments, puts, adjustable coupons, and potential call dates. Duration is expressed as a number of years, and generally, the larger a duration, the greater the interest-rate risk or reward for a portfolio’s underlying bond prices. Where applicable, securities, such as common or preferred stock, convertible bonds and convertible preferred stock, ETFs and ADRs, and CPI swaps and related futures, are excluded from these calculations.
2 Yield to maturity is the total return anticipated on a bond if the bond is held until it matures.
3 The amount of the distributions that the Fund may pay, if any, is uncertain. The distribution rate shown may vary from the actual amount paid, due to whether month ends fall on business days. The Fund may pay distributions in significant part from sources that may not be available in the future and that are unrelated to the Fund’s performance, such as return of capital.
Reflects the current month’s cumulative distribution rate annualized. The cumulative distribution rate for the month presented represents the sum of the daily dividend distribution rate as calculated by dividing the daily dividend per share by the daily NAV per share, for each respective class, for each day in the month for which a daily dividend is declared. The amount of the distributions that the Fund may pay, if any, is uncertain. The distribution rate shown may vary from the actual amount paid, due to whether month ends fall on business days. The Fund may pay distributions in significant part from sources that may not be available in the future and that are unrelated to the Fund’s performance, such as return of capital.
Investment Team
| Mutual Funds | Interval Funds | Listed Closed-End Funds | |
|---|---|---|---|
| Offering / Pricing | Continuous / NAV | Continuous / NAV | One time through IPO / Market |
| Liquidity | Daily Redemptions | Periodic Repurchases 1 | Exchange Traded |
| Valuations | Daily | Daily | Daily |
| Direct Redemption | Yes | Yes | Not generally |
| Tax Reporting | 1099 | 1099 | 1099 |
| Illiquid Assets | Limited to 15% | No Limit 2 | No Limit |
For illustrative purposes only.
1 Limited liquidity is provided to shareholders only through the Fund's quarterly repurchase offers for no less than 10% and not more than 25% of outstanding shares. Accordingly, there is no guarantee that an investor will be able to sell shares when and/or in the amount that the investor desires to sell. Investments in the Fund are subject to the risks associated with investments in closed-end interval funds, as described in the Fund's prospectus.
2 Must have liquid assets to cover repurchase offers, otherwise there is no limit.
Contact Us
For additional information, please reach out to [email protected].
Important Risk Disclosures and Other Information
This is neither an offer to sell nor a solicitation to purchase any security. Investors should carefully consider the investment objectives, risks, charges and expense of KKR Credit Opportunities Portfolio (the “Fund”). This and other important information about the Fund is contained in the prospectus, which can be obtained by contacting your financial advisor or visiting www.kkrfunds.com. Please read the prospectus carefully before investing.
The Fund is suitable only for investors who can bear the risks associated with the limited liquidity of the Fund and should be viewed as a long-term investment. Investing in the Fund is speculative and involves a high degree of risk, including the risks associated with leverage and the risk of a substantial loss of investment.
Past performance is not a guarantee of future results. Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or all of your investment. The ability of the Fund to achieve its investment objective depends, in part, on the ability of the KKR Credit Advisors (US) LLC (the “Advisor”), the Fund’s investment advisor, to allocate effectively the assets of the Fund among the various securities and investments in which the Fund invests. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns. The Fund offers multiple different classes of shares. An investor will need to receive a total return at least in excess of these expenses to receive an actual return on the investment. You should carefully consider which class of shares to purchase.
The Fund is a closed-end interval fund. The Fund’s shares have no history of public trading, and it is not intended that the shares will be listed on a public exchange at this time. No secondary market is expected to develop for the Fund’s shares. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 10% and no more than 25% of the Fund’s shares outstanding at net asset value. Under normal market conditions, the Fund expects to authorize a 10% offer. There is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in the repurchase offer. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Due to these restrictions, an investor should consider an investment in the Fund to be of limited liquidity. There is no guarantee that the investment strategies will work under all market conditions. Investors in the Fund should understand that the net asset value (“NAV”) of the Fund will fluctuate, which may result in a loss of the principal amount invested. The value of the Fund’s investments will increase or decrease based on changes in the prices of the investments it holds. This will cause the value of the Fund’s shares to increase or decrease. Holdings are subject to change without notice. The Fund is not intended to be a complete investment program. When the Fund invests in debt securities, the value of your investment in the Fund will fluctuate with changes in interest rates. The Advisor’s judgments about the attractiveness, value and potential appreciation of a particular sector and securities in which the Fund invests may prove to be incorrect and may not produce the desired results. There is no guarantee that the Fund’s leverage strategy will be successful.
The Fund’s distribution policy is to make monthly distributions to shareholders. The Fund intends to declare and pay distributions from its net investment income, however, the amount of distributions that the Fund may pay, if any, is uncertain. Shareholders should not assume that the source of a distribution from the Fund is net profit. The Fund’s distributions may be affected by numerous factors, including but not limited to changes in realized and projected market returns, fluctuations in market interest rates, Fund performance, and other factors. There can be no assurance that a change in market conditions or other factors will not result in a change in the Fund’s distribution rate or that the rate will be sustainable in the future. Distributions are not guaranteed.
This information is intended for U.S. residents only. While you may obtain a prospectus and other information about the Fund at this website, the Fund is not registered for public offer and sale in any other country. The information provided does not constitute a solicitation to buy or an offer to sell a security, or any other product or service, to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction.