KKR has announced that its first listed closed-end fund, KKR Income Opportunities Fund, has successfully completed its initial public offering and began trading on the New York Stock Exchange on July 26 under the symbol "KIO."
The Fund raised $305 million in its common share offering, excluding any exercise of the underwriters' option to purchase additional shares. If the underwriters exercise that option in full, which may or may not occur, the Fund will have raised $352 million.
KKR Asset Management serves as the Fund's investment adviser. Launched in 2004, KAM is a subsidiary of KKR and a manager of non-investment grade debt and public equities. The investment process for the Fund is substantially based on the investment process of KAM's High Yield, Bank Loans and Special Situations strategies. The Fund will be managed by Chris Sheldon and Erik Falk, co-heads of Leveraged Credit, and Nat Zilkha and Jamie Weinstein, co-heads of Special Situations.
KKR Income Opportunities Fund will invest primarily in first- and second-lien secured loans, unsecured loans and high yield corporate debt instruments. It will employ a dynamic strategy of investing in a targeted portfolio of loans and fixed-income instruments of U.S. and non-U.S. issuers and implementing hedging strategies in order to seek to achieve attractive risk-adjusted returns.