The vehicle drew more than $460 million of commitments, led by Allianz Global Investors, PitchBook reported. Investors in the older fund could sell or roll their stakes on substantially the same terms.
Private Markets | FinancialMarkets.com | October 28, 2026
Tickers: KKR
A tool that private equity firms have used for years to hold on to companies is now being used for loans.
KKR has closed its first private credit continuation vehicle, with more than $460 million of commitments, PitchBook reported, citing market sources. Allianz Global Investors led the buyer group. The vehicle holds assets from KKR Lending Partners III, a $1.5 billion direct lending fund that completed its fundraising in 2017. Investors in that fund could either sell their interests or roll them into the new vehicle on substantially the same terms. Evercore advised and Debevoise served as counsel.
KKR has not announced the deal itself, and the price relative to the loans' stated value was not disclosed.
What a continuation vehicle does
In a continuation deal, a manager moves assets from an older fund into a new one. Investors who want their money back can sell to new buyers, and those who want to stay can roll over. For a direct lending fund nearly a decade old, the alternative is to wait for loans to be repaid or to wind the fund down.
A growing pattern
KKR is not alone in building liquidity tools for older credit funds. PennantPark raised a $745 million credit secondary fund in September. Money is flowing into the asset class at the front end, too: direct lending funds raised $129.15 billion in the first nine months of 2026, up 35% from a year earlier, according to Preqin data cited by DLA Piper.
As more private credit funds age, managers and investors need ways to provide liquidity without forcing asset sales. Continuation vehicles are one answer.
Where the questions are
The supportive reading is that a large manager and a major institutional buyer found a price both sides accepted for a seasoned loan book, which helps establish a market for private credit secondaries.
The cautious reading is about price discovery. Without the discount to stated value, investors cannot tell whether selling holders received full value, and a growing market for continuation deals can also mean more managers need to extend the life of assets they cannot exit.
What to watch
Any KKR disclosure of the vehicle's terms, pricing on other private credit continuation deals, and KKR's third-quarter results on Nov. 9.