Thrivent Sells $1.2 Billion of Debt Tied to Fund-of-Funds Stakes

Insurer and money manager Thrivent issued $1.2 billion of debt backed by cash flows from some of its fund-of-funds, the latest in a wave of structured financings this year aimed at freeing up liquidity for private capital managers.

The deal was divided into a roughly $600 million slice of higher-ranking debt and a similarly sized first-loss portion, a representative for Thrivent said. The company retained the first-loss slice, they added, while the higher-ranking tranche was largely sold to KKR & Co., according to a person with knowledge of the transaction. KKR also structured the deal, said the person, who asked not to be identified because they’re not authorized to speak publicly.