The special situations arm of global buyout giant KKR has partnered with Australian fund manager Allegro to buy a portfolio of commercial loans from BOS International, a debt division of UK state-backed lender Lloyds Banking Group.
The acquisition for an undisclosed amount follows a competitive process run by BOS following a review of its Australian and New Zealand commercial loan portfolio, KKR said in a statement.
“As banks are deleveraging around the world, we continue to see opportunities to acquire some of their non-core portfolios,” said Jamie Weinstein, global co-head of special situations at KKR.
“Our goal is to provide a solution that also represents an opportunity to deliver attractive risk-adjusted returns for our investors.”
Chester Moynihan, managing director of Allegro Funds, added, “As an independent fund manager, with capital from Australian superannuation funds, we have a responsibility to seek the best opportunities for our clients.
“Our partnership with KKR is exciting and taking this opportunity is another step in the ongoing evolution of the Allegro business.”
KKR has been investing in credit since 2004 and has around $16.5bn in assets under management as of September 30 2012.
Herbert Smith Freehills provided legal counsel to KKR and Allegro.
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