The KKR investment directly highlights the strength and scale of our Asset-Based Finance business, which has experienced unprecedented growth alongside the rapid expansion of this market.
KKR, a leading global investment firm, announced today that funds and accounts managed by its credit business have led the purchase of a $7.2 billion portfolio of super-prime recreational vehicle loans from BMO Bank National Association. Concurrently with the sale, BMO purchased approximately $6.4 billion of senior notes collateralized by the sold loans. BMO will remain the servicer of the loans and will continue to originate and manage RV loans, with no expected impact on dealers, borrowers, and employees.
KKR has made 73 asset-based finance investments globally since 2016 through a combination of portfolio acquisitions, platform investments and structured investments. The firm has approximately $47 billion in ABF assets under management and a team of more than 50 professionals directly involved in the ABF effort globally.
“This investment directly highlights the strength and scale of our Asset-Based Finance business, which has experienced unprecedented growth alongside the rapid expansion of this market,” said Dan Pietrzak, Global Head of Private Credit at KKR.
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“We look forward to continuing to build on our 30-year history as a leading provider of consumer financing in the recreational market and strong network of dealer relationships across the United States,” said Tami Farrow, Head of U.S. Indirect Lending. “This transaction enables us to further optimise BMO’s balance sheet to support future growth across the bank.”
“We are proud to serve as a strategic partner to banks as they focus on optimising their balance sheets,” said Avi Korn and Chris Mellia, Co-Heads of U.S. Asset-Based Finance at KKR. “We believe this portfolio of high-quality, fixed-rate assets is a strong fit for our long-term private capital and yet another example of the compelling opportunity set that we’re seeing in Asset-Based Finance.”
KKR’s investment comes from its credit funds and accounts. Kennedy Lewis Investment Management LLC also participated in the transaction, alongside KKR and other investors.
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