Avoca invests in five strategies, European loans and bonds, credit opportunities, long/short credit, convertible bonds and structured and illiquid credit.
KKR said that the Avoca platform has seen inflows in recent years as “institutional investors seek access to credit asset classes with a focus on attractive returns and downside protection.”
KKR co-founder and co-CEO Henry Kravis said, “We believe the European credit space offers significant opportunity. To date we have built our European credit business focused on originated credit opportunities such as private credit and special situations, providing $2bn of capital in just the last two years to European companies.
“Avoca has a very strong track record, an entrepreneurial management team and excellent capabilities that are complementary to ours in European senior and liquid credit. This acquisition will enable us to expand our credit platform to offer a full spectrum of credit opportunities globally for our clients.”
Following the deal, KKR will have around $28bn in credit assets.
Earlier this week KKR-backed pharmacy group Alliance Boots was accused of dodging at least £1.12bn of tax since its private equity takeover.
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