Scott Nuttall

KKR holds $118 billion in "dry powder" (cash). Nuttall states the industry is entering a "K-shaped" recovery where large, diversified players win, and smaller firms face a "shakeout." He explicitly notes that volatility (war/rates) creates the best vintage years for deployment. Market fear regarding the Iran war and private credit liquidity is overstated for the giants. These firms benefit from dislocation. When the market freezes, cash-rich incumbents buy assets at distressed valuations. The "shakeout" of smaller players reduces competition for the giants. Long the "Alternative Asset Kings" who act as liquidity providers of last resort. Prolonged conflict causes a total freeze in exit markets (IPOs/M&A), trapping capital.

KKR holds $118 billion in "dry powder" (cash). Nuttall states the industry is entering a "K-shaped" recovery where large, diversified players win, and smaller firms face a "shakeout." He explicitly notes that volatility (war/rates) creates the best vintage years for deployment. Market fear regarding the Iran war and private credit liquidity is overstated for the giants. These firms benefit from dislocation. When the market freezes, cash-rich incumbents buy assets at distressed valuations. The "shakeout" of smaller players reduces competition for the giants. Long the "Alternative Asset Kings" who act as liquidity providers of last resort. Prolonged conflict causes a total freeze in exit markets (IPOs/M&A), trapping capital.

KKR notes a "K-shaped industry" is emerging. Firms that over-deployed in 2021 are facing an "apology tour," while diversified global players with dry powder (KKR has $118B) are taking market share. The current volatility and credit dislocation favor the giants who can buy assets from distressed smaller managers or fill the void left by banks. This is a "winner take all" consolidation phase. Long the Alternative Asset Giants. Systemic regulation on private credit; prolonged deal-making freeze.

KKR holds $118 billion in "dry powder" (cash). Nuttall states the industry is entering a "K-shaped" recovery where large, diversified players win, and smaller firms face a "shakeout." He explicitly notes that volatility (war/rates) creates the best vintage years for deployment. Market fear regarding the Iran war and private credit liquidity is overstated for the giants. These firms benefit from dislocation. When the market freezes, cash-rich incumbents buy assets at distressed valuations. The "shakeout" of smaller players reduces competition for the giants. Long the "Alternative Asset Kings" who act as liquidity providers of last resort. Prolonged conflict causes a total freeze in exit markets (IPOs/M&A), trapping capital.