FICC Focus Credit Crunch: KKR’s Pietrzak on Asset-Based Finance, AI Impact
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Dec 15, 2025 In this engaging discussion, Daniel Pietrzak, a Partner and Global Head of Private Credit at KKR, sheds light on private credit markets and their resilience. He clarifies misconceptions around asset fire sales and emphasizes the significant growth potential in asset-based finance. The conversation delves into the impact of AI on lending decisions, as well as diversification strategies to mitigate risks. Pietrzak also explores international market dynamics and the evolving landscape of private investments, offering valuable insights into future opportunities.
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Limited Redemption Reduces Fire-Sale Risk
- Most private credit AUM lacks redemption features, so fire-sale liquidity risks are overstated.
- Loss rates could rise, but structures and investor time horizons reduce forced selling risk.
Asset-Based Finance Is KKR’s Growth Engine
- Asset-based finance comprises the majority of KKR's private credit AUM and targets tangible consumer assets.
- KKR partners with big brands to structure balance-sheet light solutions where KKR takes consumer performance risk.
Structure Consumer Deals Around Collateral And FICO
- Target higher-FICO or secured consumer exposures like auto and home-improvement lending for downside protection.
- Structure deals so sponsors keep customer relationships while private credit holds credit risk.