KKR should be bought on any KREST-induced weakness, says BMO Capital

BMO Capital analyst Rufus Hone notes that KKR has disclosed that its semi-liquid real estate product KREST experienced redemption requests for about 8% of its NAV last quarter. He highlights that KREST is currently an immaterial contributor to KKR’s business; democratized retail products account for 1% of AUM for KKR, and KREST represents just 0.3% of KRR’s AUM. Hone would be a buyer of KKR, particularly on any KREST-induced weakness. The analyst has an Outperform rating on the shares with a price target of $74.