KKR’s Sheldon Sees Private Credit Becoming Evergreen Allocation
- More KKR clients are permanently allocating to private debt
- KKR sees shift outlasting ebbs and flows in debt markets
Sheldon sees the pace of growth in private credit as sustainable without usurping the traditional role of banks in syndicating debt.
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KKR & Co. sees more investors permanently allocating to private credit alongside other fixed-income assets even as public credit markets regained some strength in recent months.
More of the firm’s clients are increasingly shifting the $1.5 trillion private credit market from a tactical allocation to an evergreen bucket, Christopher Sheldon, co-head of credit and markets at KKR wrote in an investor letter seen by Bloomberg. That’s in spite a pick-up in issuance for syndicated loans and high-yield bonds this year that has allowed banks to compete more aggressively with private credit funds to finance deals.