Every great investment house stands by three things: integrity, experience, and process. All these elements put together create a formula by which the best investors live by. KKR’s credit division has been around since 2004, and as partner Jeremiah Lane revealed to me, the way they seek out top investment ideas is as precise as they come.
The criteria for finding a great company’s credit is simple but rare to find:
Companies with durable cash flows
Does it have any in-built downside protection?
Is there a risk the company won’t be able to honour its payments?
That process must count for something. Since the KKR Credit Income Fund was launched in Australia, it’s paid out a cumulative distribution of more than 13%. And despite the torrid year that was 2022, the fund has still got a positive total return to report.
In this Expert Insights video, we’re tackling the process and the opportunities within the credit market for 2023. You’ll get to hear first-hand how one of the world’s most influential money managers separates the great deals from the good ones.
Note: This series of videos was taped on Wednesday February 8th 2023.
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