KKR acquires $7.2 Billion Portfolio of Prime Recreational Vehicle Loans
15 Dezember 2023 - 10:15PM
Business Wire
KKR, a leading global investment firm, today announced that
funds and accounts managed by its credit business have led the
purchase of a $7.2 billion portfolio of super-prime recreational
vehicle (RV) loans from BMO Bank National Association, part of BMO
Financial Group (“BMO”). Concurrently with the sale, BMO purchased
approximately $6.4 billion of senior notes collateralized by the
sold loans. BMO will remain the servicer of the loans and will
continue to originate and manage RV loans, with no expected impact
to dealers, borrowers, and employees.
This transaction aligns with KKR’s Asset-Based Finance (ABF)
strategy, which focuses on privately originated and negotiated
credit investments that are backed by large and diversified pools
of financial and hard assets, offering diversification to
traditional corporate credit and attractive risk-adjusted returns.
KKR has made 73 ABF investments globally since 2016 through a
combination of portfolio acquisitions, platform investments and
structured investments. The firm has approximately $47 billion in
ABF assets under management and a team of more than 50
professionals directly involved in the ABF effort globally.
“This investment directly highlights the strength and scale of
our Asset-Based Finance business, which has experienced
unprecedented growth alongside the rapid expansion of this market,”
said Dan Pietrzak, Global Head of Private Credit at KKR.
“We look forward to continuing to build on our 30-year history
as a leading provider of consumer financing in the recreational
market and strong network of dealer relationships across the United
States,” said Tami Farrow, Head U.S. Indirect Lending. “This
transaction enables us to further optimize BMO’s balance sheet to
support future growth across the bank.”
“We are proud to serve as a strategic partner to banks as they
focus on optimizing their balance sheets” said Avi Korn and Chris
Mellia, Co-Heads of U.S. Asset-Based Finance at KKR. “We believe
this portfolio of high-quality, fixed rate assets is a strong fit
for our long-term private capital and yet another example of the
compelling opportunity set that we’re seeing in Asset-Based
Finance.”
KKR’s investment comes from its credit funds and accounts.
Kennedy Lewis Investment Management LLC also participated in the
transaction, alongside KKR and other investors.
About KKR
KKR is a leading global investment firm that offers alternative
asset management as well as capital markets and insurance
solutions. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
world-class people, and supporting growth in its portfolio
companies and communities. KKR sponsors investment funds that
invest in private equity, credit and real assets and has strategic
partners that manage hedge funds. KKR’s insurance subsidiaries
offer retirement, life and reinsurance products under the
management of Global Atlantic Financial Group. References to KKR’s
investments may include the activities of its sponsored funds and
insurance subsidiaries. For additional information about KKR &
Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com.
For additional information about Global Atlantic Financial Group,
please visit Global Atlantic Financial Group’s website at
www.globalatlantic.com.
About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America
by assets, with total assets of $1.3 trillion as of October 31,
2023. Serving customers for 200 years and counting, BMO is a
diverse team of highly engaged employees providing a broad range of
personal and commercial banking, wealth management, global markets
and investment banking products and services to 13 million
customers across Canada, the United States, and in select markets
globally. Driven by a single purpose, to Boldly Grow the Good in
business and life, BMO is committed to driving positive change in
the world, and making progress for a thriving economy, sustainable
future, and inclusive society.
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version on businesswire.com: https://www.businesswire.com/news/home/20231215095882/en/
Media Julia Kosygina 212-230-9722 media@kkr.com
Jeff Roman Jeff.roman@bmo.com
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