KKR has closed its first private credit continuation vehicle with more than $460 million in total commitments, according to PitchBook, which cited market sources. Allianz Global Investors is the lead buyer of the vehicle, which holds the assets of KKR Lending Partners III, a $1.5 billion direct lending fund that completed fundraising in 2017.
Existing investors were offered the choice of receiving liquidity by selling their interests or rolling into the new vehicle on substantially the same terms. Evercore served as financial advisor to KKR and Debevoise as legal counsel. KKR Lending Partners III had generated an 11.0 percent net internal rate of return and a 1.7 times multiple on invested capital as of June 30, 2026, according to a KKR Form 10-Q filing cited by PitchBook.
AllianzGI has become a repeat lead in this niche: it is also the lead investor on Blackstone’s $1 billion private credit continuation vehicle and co-led Crescent Capital’s $3.2 billion credit continuation vehicle earlier this year. Allianz has invested in private credit since 2007 and AllianzGI launched its first dedicated private credit secondaries fund in 2022. “This investment provides access to a diversified portfolio of predominantly senior, US-focused direct lending investments,” AllianzGI said.
The close lands in a fast growing market. Evercore data cited by PitchBook showed credit secondaries volume in the first half of 2026 alone surpassed the full year 2025 volume of $20 billion, with continuation vehicles making up most of it. For KKR, George Mueller, a partner in the firm’s credits and markets division, said the firm was “pleased to expand our relationship with AllianzGI through this transaction.