KKR & Co. has seen its private high-grade debt deals surge to $80 billion in 2026, marking a substantial increase compared to previous periods. This growth is largely attributed to the current market environment, characterized by rising interest rates and a strong investor appetite for private credit investments.
The firm recently finalized a $2.1 billion leveraged loan to support its acquisition of medical-device maker Integer Holdings Corp. This loan secured more favorable terms than initially discussed, with an interest rate of 2.5 percentage points over the benchmark, which is up to 0.5 percentage point less than initial pricing discussions. The loan was sold at par, after initially being offered at a discounted 99.5 cents on the dollar, indicating robust investor demand for such financings.
KKR has also been active in other debt markets, including marketing a debt deal tied to PayPal Holdings Inc.'s buy now, pay later business in Germany. This marks the first such deal in Europe for KKR, highlighting the firm's expanding presence in various private debt segments. The strong demand for leveraged buyout paper, with only 15% of US leveraged loan launches this year funding acquisitions, underscores the favorable conditions KKR is capitalizing on.
According to KKR's Q2 2026 earnings report, the firm achieved record financial results, with fee-related earnings up 34% year-over-year to $1.32 per share and total operating earnings rising 27% to $1.68 per share. Management fees totaled $1.2 billion, a 26% increase year-over-year. The firm raised $34 billion during the quarter and deployed $24 billion, contributing to $305 billion raised since the start of 2024, surpassing its three-year fundraising target ahead of schedule. Credit assets under management have grown from $80 billion to $300 billion since the Global Atlantic acquisition, with associated management fees tripling to about $1.2 billion, further demonstrating KKR's significant activity and success in the credit space.
