KKR Injects $300 Million Into Private Credit Fund, Following $560 Million Loss

FS KKR Capital Corp. (FSK) reported a $560 million first-quarter loss due to rising defaults. The fund serves as KKR’s largest private credit vehicle. It operates as a publicly traded business development company. Non-accrual loans—those unlikely to be repaid—rose to 4.2% of the portfolio's fair value.

KKR committed $300 million to stabilize the fund following a decline in net asset value. The support package includes $150 million in convertible preferred stock purchases. KKR will also launch a tender offer for up to $150 million of common stock.

The fund's board authorized a separate $300 million stock repurchase program.