Home > Funds: Overview
Our goal? Achieving attractive leveraged risk-adjusted returns by deploying capital across specific asset classes.

As investment manager, KKR Fixed Income, through its affiliated subsidiaries, currently manages two related and complementary funds: KKR Financial Holdings LLC and KKR Strategic Capital Fund. We evaluate each investment opportunity based on its leveraged risk-adjusted return subject to our current investment guidelines. As manager, we adhere to the following investment process:

  • Asset Allocation — We use the same philosophy used by KKR’s investment professionals in managing private equity funds with the objective of creating a portfolio that is designed to provide competitive, leveraged risk-adjusted returns for our shareholders. As manager, we use a combination of “top-down” and “bottom-up” analyses. Our “top-down” approach uses macro analysis of relative asset valuations, economic outlook, interest rate expectations, and credit fundamentals as well as technical factors to target specific industries and asset classes. Our “bottom-up” approach includes rigorous analysis of credit, industry trends and dynamics, and dislocation events.
  • Investment Sourcing and Screening — We leverage our access to the resources and professionals of KKR for sourcing and screening transactions and to make the decision on whether to proceed to due diligence. Sourcing also takes place through other channels, including corporate executives, commercial and investment banks, financial sponsors, and intermediaries.
  • Credit Research and Due Diligence — When conducting due diligence, we evaluate critical business and financial risk considerations, as well as tax, accounting, environmental and legal issues to determine whether or not to proceed with an investment.
  • Investment Committee Review and Approval — Decisions to invest are made only with unanimous approval of the Investment Committee.
  • Recurring Monitoring — We monitor our portfolio using daily, quarterly, and annual analysis to make decisions regarding portfolio investments.
  • Buy or Sell Based on Price Targets and Relative Value Parameters — We do not make buy or sell decisions based on price momentum models.