KKR CFO Sees 'Compelling' Case for Private Credit

Summary

KKR CFO Rob Lewin defends private credit as a compelling asset class despite recent outflows and noise, citing widened spreads and strong institutional demand. He also addresses KKR's stock price disconnect, highlighting strong fundamentals and buybacks.

• KKR's Q1 performance showed strong management fee growth and high earnings.
• Lewin argues private credit remains attractive, especially for institutional investors.
• Spreads in direct lending have widened, creating an entry point.
• KKR is buying back shares and executives are buying stock personally.
• Lewin expects defaults to increase from low levels but sees it as manageable.
• Individual investor allocation to alternatives is expected to grow over time.
• KKR's private wealth products saw net inflows and low redemptions in Q1.
• Middle East investors have not pulled back from KKR despite regional tensions.