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KKR Asset-Based Finance Fund (K-ABF) “K-ABF”

Widening the Aperture in Private Credit

Introducing KKR Asset-Backed Finance Fund
(K-ABF)

Bringing together the established and specialist global private credit capability of KKR and the local expertise of its Australian investment partner, Channel Capital, the KKR Asset-Backed Finance Fund (K-ABF) (‘Fund’) provides Australian eligible investors with access to a differentiated private credit solution focussed on the large and fast-growing Asset-Based Finance (ABF) universe.

Fund Highlights

Attractive Income Profile

Seeks to generate regular income secured by underlying ABF investments backed by contractual cash flows, offering the potential for risk-adjusted returns

Enhanced Portfolio Diversification

Gain exposure to non-corporate credit investments focused on lending against financial or physical assets in the “real economy including consumer and residential lending, commercial finance, hard assets and contractual revenue.

An Established ABF Platform

KKR has over a decade of investment experience in the ABF market, with longstanding relationships in specialised sectors that provides a repeatable sourcing edge.

Efficient Access

Fully drawn structure without capital calls, with monthly applications and redemptions^* and monthly distribution^**

* The application form, together with the application monies, must be received by 5pm (Sydney, New South Wales time), ten (10) Business Days prior. Redemptions to be offered monthly, on the last Calendar Day of each month.

** Monthly when applicable or available from the Underlying Company or as otherwise determined by Channel Investment Management Limited ACN 163 234 240 AFSL 439007 (‘CIML’).

Summary of key terms

fund Name

KKR Asset-Based Finance Fund (K-ABF)

Underlying Fund

KKR Asset-Based Finance Fund

Responsible Entity

Channel Investment Management Limited ACN 163 234 240 AFSL 439007

Investment Objective & Strategy

The Fund, via its investment in the Underlying Fund, aims to generate current income. The Underlying Fund pursues a multi-sector investment approach that primarily targets a range of ABF investments across asset sectors and throughout the capital structure of ABF opportunities. This includes privately sourced and structured investments across four key ABF market sectors:

consumer/mortgage finance
commercial finance
hard assets
contractual cash flows

Target Distribution¹

9-10%+ target net annual distribution

Min Investment Amount²

A$100,000. Read the K-ABF PDS for more information. CIML has discretion to accept lower amounts.

Management fee³

Class D (Standard Bonus Class): 1.25% p.a.

Underlying Fund management fee: 1.00% p.a.^
Fund Management fee: 0.25% p.a.

Performance Fee

No performance fee is charged at the Fund level.

Indirect Incentive Fee^
(Underlying Fund)⁴

Incentive fee is based on the the Underlying Fund's pre-incentive fee net investment income for the immediately preceding quarter. The Underlying Fund Incentive Fee is subject to a quarterly hurdle rate of 1.25% (5.0% p.a.) of the average daily value of the Underlying Fund's net assets for the most recently completed fiscal quarter.

Valuations

Monthly NAV pricing

Applications

Monthly

Redemptions

Monthly redemptions (best endeavours). Read the PDS for further information on redemption terms.

Currency

Australian dollars (AUD)

^ The Underlying Fund Management Fee and incentive fee is waived from 1 April 2026, with a cap then in place until 31 December 2026. For further details on the Underlying Fund Expense Limitation and Reimbursement Agreement, please refer to the PDS.

Indicative target net annual distribution for the Underlying Fund. Target net annual distribution are hypothetical in nature and are shown for illustrative, informational purposes only.
Please refer to the PDS for additional detail.
Inclusive of GST and less RITC (if applicable).
For further information and before making any decision to invest, you should read the K-ABF Fund's Product Disclosure Statement and Target Market Determination when available.
The application form, together with the application monies, must be received by 5pm (Sydney, New South Wales time), ten (10) Business Days prior. Redemptions to be offered monthly, on the last Calendar Day of each month.

Benefits of investing in ABF

Enhanced Diversification¹

ABF is non-corporate lending, which can enhance portfolio diversification when combined with both equities and traditional fixed income investments

Widen the Aperture in Private Credit

Access to the fast-growing global ABF market, which is already more than ~3x the size of the corporate direct lending universe.²

Diversificationdoes not guarantee returns or capital preservation.
Source: IntegerAdvisors and KKR Credit research estimates on latest available data as of March31, 2024, sourced from country-specific official / trade bodies as well ascompany reports. Represents the private financial assets originated and held bynon-banks globally, related to household (including mortgages) and businesscredit. Excludes loans securitised or sold to agencies and assets acquired incapital markets or through other secondary/ syndicated channels. There is noguarantee that the above market trends will continue or that the opportunitywill persist for the life of the Underlying Fund.

What is Asset-Based Finance (ABF)?

Credit investments focused on lending against financial or physical assets in the real economy. ABF deals are privately negotiated and backed by large and diversified pools of financial and hard assets that generate consistent, recurring cash flows.

Note: The above is for illustrative and discussion purposes only and may be subject to change. Actual investments may differ significantly, and there can be no assurances with respect to the ultimate investment types comprising the portfolio.

Underlying Fund Target Portfolio Allocation

By Sector

By Region

The above is for illustrative and discussion purposes only and may be subject to change. Actual investments may differ significantly, and there can be no assurances with respect to the ultimate investment types comprising the portfolio. Target allocations are subject to change. There is no assurance that the target allocations will be achieved, and actual allocations may be significantly different than those shown here.

KKR Casts A Wide Net When Sourcing ABF Opportunities

Learn More About Asset-Based Finance

Discover the latest Asset-Based Finance insights from KKR’s investment team.

LEARN MORE

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Important Information

This information has been prepared for use only by wholesale clients (as defined under the Corporations Act 2001 (Cth)). This website and its contents are issued solely by Channel Investment Management Limited ACN 163 234 240 AFSL 439007.

Channel Investment Management Limited ACN 163 234 240 AFSL 439007 ('CIML') is the Responsible Entity for the KKR Asset-Backed Finance (K-ABF) Fund (AUD) ARSN 698 934 379 (the 'Fund'). Channel Capital Pty Ltd ACN 162 591 568 AR No. 1274413 ('Channel') is the holding company of CIML and has been appointed as Kohlberg Kravis Roberts & Co’s ('KKR') distribution partner. Neither CIML, nor KKR, its officers, or employees make any representations or warranties, express or implied as to the accuracy, reliability or completeness of the information contained on this website and nothing contained on this website is or shall be relied upon as a promise or representation, whether as to the past or the future. Past performance is not a reliable indication of future performance.

This information is given in summary form and does not purport to be complete. The information should not be considered advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling units in the Fund and does not take into account an investor’s particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. For further information and before investing, please read the Product Disclosure Statement and Target Market Determination for the Fund, available at www.channel-kkr.com.au.

Channel has a financial incentive to recommend KKR’s products to prospective investors, resulting in a material conflict of interest. Other potential and actual conflicts of interest which exist and/or arise from Channel's current and future business activities and relationships with KKR, its affiliates and investors (including those solicited by Channel) and portfolio companies of KKR-managed funds and accounts ('Portfolio Companies') include Channel and its personnel may from time to time invest in Portfolio Companies and/or companies that have interests different from or adverse to the Fund or other KKR clients and/or their Portfolio Companies. Channel is also entitled to be indemnified from and against any actual and direct liabilities, losses, damages, costs or expenses (including legal fees) arising out of its services, including any claims, demands, actions, suits or proceedings in which Channel may be involved, or threatened to be involved in connection with its engagement by KKR. As a result, the Fund may be required to reimburse Channel or KKR for any expenses incurred in the defence of, or in response to, any such action, although Channel’s engagement with KKR includes certain carve outs to the above indemnification and reimbursement obligations including where such losses arise solely out of our bad faith, fraud, wilful misconduct, gross negligence or a material breach of Channel's agreement with KKR. None of Channel or its affiliates, officers, employees, shareholders or agents are officers, employees, members, partners or agents of KKR, the Fund or their respective affiliates and may not be viewed as such. Channel is not an affiliate of KKR for the purposes of the U.S. Investment Advisers Act of 1940, as amended.