KKR’s CRE Deal Pipeline Heats Up Amid ‘Year of Transactions’
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The decline in commercial real estate values has eased enough that private investors are starting to fill in a financing void left by the pullback of regional banks and other traditional lenders to the industry, according to buyout giant KKR & Co.
Issuance of commercial mortgage-backed securities will pick up by nearly a third this year compared to last, and private equity funds that have spent the last 18 months in wait-and-see mode are “awash in dry powder,” KKR’s head of real estate credit Matt Salem wrote in a note to clients. KKR’s own real estate credit pipeline has now swelled to $15 billion, up from an average $10-12 billion in 2023, he said.