KKR Doubles Private Debt Deals to $80 Billion as AI Spending Explodes

KKR & Co. (NYSE:KKR) has expanded its private investment-grade financing business this year, with deal activity reaching more than twice last year’s level as borrowers seek more flexible alternatives to traditional bank financing. • KKR stock is showing downward bias. What should traders watch with KKR? KKR structured or syndicated more than $80 billion of private investment-grade transactions during the first half of 2026, according to a company presentation reviewed by Bloomberg. By Sept. 1, the firm had surpassed twice the amount it originated throughout 2025. Chris Sheldon, KKR co-head of credit and markets, stated that insurance capital is supporting many of these deals, as companies increasingly move assets off their balance sheets to raise cash while maintaining their credit ratings. Read Also: KKR’s $5.9 Billion Integer Deal Helps Healthcare Dominate Private Equity in August The firm has raised approximately $15 billion for credit from third parties so far this year, up 29% from the same period last year, the presentation noted. The firm has structured deals for borrowers such as Kuwait Petroleum Corp., Enbridge Inc. and Samsung Electronics. Sheldon also noted that the demand for AI infrastructure will drive demand for private credit over the next five years, and spending might outpace the $7.6 trillion of available capital. KKR was part of a group of six asset managers that announced a partnership last month with NVIDIA Corp. to mobilize more than $500 billion of third-party capital for the buildout of AI infrastructure over time. Private credit funds have been experiencing turmoil in the market this year amid rising concerns about asset quality and valuations, particularly in software lending. KKR’s private credit fund for wealthy clients outside the U.S. saw redemption requests ease, even as withdrawl pressure continues across the North American private credit market. KKR-Income Trust I, a non-traded private credit fund which serves investors in Europe, the Middle East, Africa and the Asia-Pacific region, received withdrawal requests equal to approximately 2.5% of its net asset value in the third quarter. Photo: Shutterstock Read Also: Private Equity Finds a New Way to Bet on AI: Data Center Services