KKR restricts retail credit fund redemptions due to capital outflows — Bloomberg

LootboxPhobia · 2026-04-01T21:29:06+00:00

KKR has restricted redemptions for the non-traded investment fund KKR FS Income Trust (K-FIT) due to a large number of redemption requests from retail investors, setting a buyback limit of 5%. Another fund, K-FITS, has fulfilled all redemption requests. Recently, alternative asset management firms have generally implemented redemption restrictions to cope with private credit pressures and investor concerns.

LootboxPhobia

2026-04-01 21:29:06

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Investing.com - According to Bloomberg, KKR & Co. (NYSE:KKR) limited redemptions for its non-traded business development company, KKR FS Income Trust, after receiving a large number of redemption requests from retail investors. The report cites a shareholder letter dated March 31, 2025.

The fund, named K-FIT, received total repurchase requests equivalent to 6.3% of outstanding shares during the redemption window ending March 30, 2025. KKR set a repurchase cap of 5% and will satisfy all repurchase requests at a rate of about 80%.

A second fund, KKR FS Income Trust Select (K-FITS for short), received total repurchase requests equivalent to 3.7% of outstanding shares and will satisfy all requests. According to another letter, also dated March 31, 2025, the two funds pursue similar strategies but are managed and distributed separately.

In recent weeks, alternative asset managers have been imposing redemption limits on non-traded business development companies, as pressure in private credit has prompted retail investors to increase redemption requests. Investor concerns include the underlying quality of private credit loans and borrowers’ exposure to the risk of disruption from artificial intelligence.

Based on these letters, both funds received total inflows for the quarter that exceeded the total amount of redemption requests.

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