KKR, The New York-based alternative asset manager said it would refund $350 million in previously paid-out carried interest to investors in its second private equity fund in Asia.
This is the latest in a string of setbacks for the private equity and private credit industry.
The Tricolor, First Brands and Market Financial Services(MFS) bankruptcies have already caused a stir for the private credit industry.
Still, the private credit sector at 2 trillion USDs of assets under management seems big enough to absorb these shocks.
If the Federal Reserve does not raise interest rates abruptly and there is no AI technology bust, the private credit sector should weather the storm in 2 to 3 years.
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