KKR Credit Income Fund · ASX:KKC
KKR Credit Income Fund — Investor Presentation (November 2020)
11 slides from KKR Credit Income Fund's investor presentation, Nov 26, 2020
Slide 1: Presentation accompanied a video recording
For personal use only The following presentation deck accompanied a video recording. To view the video recording please click on the link here. 1
Slide 2: KKR Credit Income Fund Market Update November 2020
For personal use only KKR Credit Income Fund Market Update November 2020
Slide 3: Important Information
Important Information You must read this notice before reading or making any use of this Document or any information contained in this Document. By continuing to read, use or otherwise act on this Document, you agree to be bound by the following terms and conditions, including any modifications to t
Slide 4: Agenda
Agenda For personal use only 1. KKC Performance Update 2. Deep Dive into EDL Platform 3. EDL Portfolio Overview 4. Opportunities in 2020 for EDL 4
Slide 5: KKC Performance Update
KKC Performance Update For personal use only KKC NTA Since Inception $2.60 $2.40 $2.41 $2.20 $2.13 $2.00 $1.91 $1.80 $1.60 $1.40 $1.25 $1.20 $1.00 21-Nov-19 28-Nov-19 5-Dec-19 12-Dec-19 19-Dec-19 26-Dec-19 2-Jan-20 9-Jan-20 16-Jan-20 23-Jan-20 30-Jan-20 6-Feb-20 13-Feb-20 20-Feb-20 27-Feb-20 5-Mar-2
Slide 6: Investment Philosophy
European Direct Lending Investment Philosophy Seek to provide senior secured capital to established upper-middle market companies in stable industries For personal use only ▪ Asset Focus: 1st Lien senior secured, select 2nd Lien investments(1) Focus on Upper-Middle ▪ EBITDA: Above €25m and targeting
Slide 7: Key Numbers on EDL Platform
Key Numbers on EDL Platform European Direct Lending Investment Committee For personal use only Matthieu Boulanger Blaine MacDougald Eddie O’Neill Daniel Pietrzak Partner Partner Partner Partner 3 years at KKR 9 years at KKR 18 years at KKR* 4 years at KKR 21 years’ experience 17 years’ experience 25
Slide 8: EDL Fund
EDL Fund1 ~US$1.3bn For personal use only • KKR’s European Direct Lending (“EDL”)1 Fund has its final close on 18th September 2020 EDL Fund Firepower • The EDL fund has buying power of ~US$1.3bn (A$1.8bn)2. KKC represents ~21% of this buying power. Other investors include KKR’s balance sheet, pensio
Slide 9: EDL Fund Portfolio Overview
EDL Fund Portfolio Overview % Portfolio by Seniority % Portfolio by Lien KKR Credit Origination Role For personal use only Senior Subordinated 100% Secondary Participant 2% Primary 6% Unsecured 90% 94% 4% Participant 80% 3% 70% 60% 50% Sole Club 40% 22% 37% 30% 20% 10% 0% 6% 0% 0% Co-Lead Other Unse
Slide 10: Opportunities for EDL in 2020
Opportunities for EDL in 2020 Broadly Syndicated Loans For personal use only • During Q1/Q2 2020, the EDL fund invested ~8% of the portfolio into high quality broadly syndicated loans • These assets had traded off steeply and the EDL fund was able to buy and sell these assets within a 4-6 week perio
Slide 11: Key Takeaways
Key Takeaways • KKR has a large European Direct Lending Platform with an experienced and multi-lingual team For personal use only • KKR’s focus on Direct Lending in Europe is the larger end of the middle market • There are no names currently on the EDL Watchlist. • The EDL fund has been able to take
KKR Credit Income Fund — Investor Presentation (November 2020) on 6ix