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Asset-based finance the next big thing in private credit, KKR's Daniel Pietrzak says

Daniel Pietrzak, co-head of private credit at KKR, believes that asset-based finance (ABF) is poised to become a significant growth area within private credit. He highlights that ABF, which includes financing against assets like real estate, infrastructure, and equipment, offers a compelling risk-return profile due to its secured nature. Pietrzak notes that the current market environment, characterized by economic uncertainty and a shift towards more conservative lending practices by banks, is driving demand for alternative financing solutions like ABF. He also mentions that KKR has been expanding its ABF strategies, seeing opportunities in sectors where traditional financing is becoming less available or more expensive. This approach not only diversifies KKR's offerings but also taps into a market segment that could benefit from the firm's expertise in managing complex, asset-backed investments.

Read the Full Pensions&Investments Article at [ https://www.pionline.com/alternatives/kkrs-daniel-pietrzak-thinks-asset-based-finance-next-big-growth-area-private-credit ]