KKR & Co. is looking to grow its asset-based private lending business to capitalize on a retreat by banks and more traditional market participants in the wake of the coronavirus pandemic that has led to mis-priced risk.
Loans in the roughly $4.5 trillion private asset-based finance market can be secured by collateral ranging from homes and vehicles to inventory and equipment. The sector, which is expected to grow to $6.9 trillion over the next five years, is also appealing as it offers credit exposure that’s largely disconnected from more broadly held types of debt, according to KKR.
