KKR acquires $7.2B portfolio of prime recreational vehicle loans

KKR announced that funds and accounts managed by its credit business have led the purchase of a $7.2B portfolio of super-prime recreational vehicle loans from BMO Bank National Association, part of BMO Financial Group. Concurrently with the sale, BMO purchased approximately $6.4B of senior notes collateralized by the sold loans. BMO will remain the servicer of the loans and will continue to originate and manage RV loans, with no expected impact to dealers, borrowers, and employees. This transaction aligns with KKR‘s Asset-Based Finance strategy, which focuses on privately originated and negotiated credit investments that are backed by large and diversified pools of financial and hard assets, offering diversification to traditional corporate credit and attractive risk-adjusted returns. KKR has made 73 ABF investments globally since 2016 through a combination of portfolio acquisitions, platform investments and structured investments. The firm has approximately $47B in ABF assets under management and a team of more than 50 professionals directly involved in the ABF effort globally.