Kkr Credit Income Fund (KKC) H2 2023 earnings summary

Executive summary

• KKR Global Credit Opportunities Access Fund L.P. invests through interests in KKR GCOF Access Fund Funding L.P. and Holding L.P., focusing on a diversified portfolio of fixed income securities, high yield bonds, leveraged loans, and structured products.

• The fund reported total assets of $287.4 million as of December 31, 2023, with all assets invested in the Master Funds.

• No management fee or incentive allocation is charged at the Partnership or Master Fund level for the Limited Partner.

Financial highlights

• Net investment income for 2023 was $16.4 million, with total investment income of $37.3 million and total expenses of $20.9 million.

• Net realized and unrealized gains allocated from Master Funds were $45.9 million, offset by a $46.4 million unrealized loss on the profit participating note, resulting in a net loss of $16.4 million.

• The Partnership distributed $67.7 million to the Limited Partner during the year.

• Total return for the year at the Funding L.P. level was 24.76%, with a net investment income ratio of 11.04%.

Outlook and guidance

• The Partnership aims to achieve attractive, risk-adjusted returns through a diversified credit portfolio, with ongoing focus on high yield bonds, leveraged loans, and structured products.