Fixed Income
KKR and Carlyle Take No Carry on New Private Credit Funds
Direct-lending giants are forgoing a chunk of profit on “evergreen” funds as they look to build their share of the $1.5 trillion market.
Private credit has been a magnet for firms attracted to its extravagant returns.
Photographer: Gabby Jones/BloombergThis article is for subscribers only.
Two of the world’s biggest private credit firms have launched funds that will take far less profit than is usual for the industry — another sign of how power has started shifting toward investors in this $1.5 trillion market.
KKR & Co. and Carlyle Group Inc. won’t take the portion of profit known as “carry” on returns from two new European direct-lending vehicles, according to people familiar with the matter who weren’t authorized to speak publicly.