FILE PHOTO: Trading info for KKR & Co is displayed on a display on the ground of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid/File Photo
(Reuters) – U.S. personal fairness agency KKR & Co Inc is looking for to boost $1.5 billion for its third special situations fund, individuals acquainted with the matter stated on Friday.
KKR Special Situations Fund III, which was registered with regulators in June, will purchase distressed debt at a reduction, stated three sources who requested anonymity to debate the matter.
KKR, which has not introduced the fundraising goal, declined to remark. It advised buyers throughout its second-quarter earnings name in July that it was fundraising for a special situations fund.
New York-based KKR closed its first special situations fund after elevating $2 billion from buyers in 2014. Its second closed with $three.35 billion in 2016.
Special situations funds spend money on the bonds of corporations about to go bankrupt, with hopes of incomes substantial positive aspects when the companies return to monetary well being.
KKR’s special situations investments embrace Gibson, a Nashville-based guitar producer, and Telepizza, a pizza supply firm based mostly in Madrid.
U.S. personal fairness companies are anticipated to boost about $220 billion this yr, in response to knowledge supplier Pitchbook, as institutional buyers proceed to hunt returns not obtainable in public markets.
(This story corrects “situations” to plural all through.)
Reporting by Chibuike Oguh in New York; Editing by Richard Chang