Approach + strategy

FS/KKR Advisor, LLC primarily focuses on investments in senior secured loans of private middle market U.S. companies and, to a lesser extent, subordinated loans and certain asset-based financing loans of private U.S. companies. We seek to generate current income and, to a lesser extent, long-term capital appreciation through our disciplined approach, extensive investment platform and capacity to create customized one-stop credit solutions.

Approach + strategy

FS/KKR Advisor, LLC primarily focuses on investments in senior secured loans of private middle market U.S. companies and, to a lesser extent, subordinated loans and certain asset-based financing loans of private U.S. companies. We seek to generate current income and, to a lesser extent, long-term capital appreciation through our disciplined approach, extensive investment platform and capacity to create customized one-stop credit solutions.

Global platform with seasoned professionals

  • Large, scalable platform focused on sourcing, structuring, executing, monitoring and harvesting a broad range of private investments supported by approximately 240 dedicated investment professionals at KKR Credit1
  • Expertise, network and resources of KKR, which has approximately 700 investment professionals in 26 global offices2
    • Diverse investment backgrounds with prior experience at investment banks, commercial banks, other asset managers and operating companies
    • ­In-depth understanding of the strategic, financial and operational challenges and opportunities of middle market companies

Long-standing relationships in corporate finance

  • Deep strategic relationships with private equity firms, banks and trading desks globally
  • Long reputation as a reliable financing partner to middle market sponsors, including during periods of significant market dislocation 
  • International capabilities of KKR Capital Markets to support the origination of new private credit investment opportunities
    • Expanded sources of deal flow, real-time market intelligence on pricing trends and continuous dialog with issuers and sponsors allows us to provide holistic financing solutions to current and prospective portfolio companies
    • ­Ability to access and originate larger transactions, which enhances our ability to manage risk

Customized credit solutions for upper middle market

  • Focus on providing customized one-stop credit solutions to private upper middle market companies with annual EBITDA of $50 million–$150 million at the time of investment
  • Size and scale to originate, commit to and hold positions in excess of $1 billion in a given transaction, which allows us to serve in the lead financing role for select companies with more than $100 million in EBITDA
    • Ability to underwrite an entire transaction provides financial sponsors and companies with a greater degree of financing certainty and enhances our competitive position
    • ­Flexibility to offer a variety of financing structures to meet company needs
    • ­Competitive advantage within the upper end of the middle market as fewer lenders are equipped to provide holistic solutions for these companies

Disciplined, income-oriented investment philosophy

  • Defensive investment approach focused on long-term credit performance and principal protection
  • Bottom-up strategy and engaged portfolio management designed to maximize current income and minimize the risk of capital loss while maintaining the potential for long-term capital appreciation
    • Multistage selection process for each investment opportunity
    • Ongoing monitoring of each portfolio company with particular emphasis on early detection of potential deteriorating credit conditions

Expertise across the capital structure

  • Broad skills and experience investing at all levels of a company’s capital structure, which helps us manage risk while pursuing opportunities for significant returns on investments
  • Expertise to produce and maintain an investment portfolio that will perform in a broad range of economic conditions

Ability to create bespoke financing solutions

  • Capacity to create customized solutions that capitalize on the expansive and growing opportunity within underserved asset classes, including the aircraft, consumer finance and auto and equipment finance sectors
  • Focus on identifying investments with strong collateral protection, low correlation to the broader markets and equity-like upside potential
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