Why this fund's 15-year history could be its greatest advantage

To say that the KKR Global Credit Opportunities Fund (GCOF) was born in a baptism of fire is possibly an understatement. The fund, which was launched in the US in 2008, has seen policy changes (both fiscal and monetary), the ups and downs of the post-GFC economy, and the wild volatility of the global equity market. In fact, some of its best returns have come right out of moments of market dislocation like COVID and the 2015/2016 energy sell-off. 

So how do they do it? Much like many other long-running funds, the secret is to have a north star - a non-negotiable that guides a fund's mission and returns. For GCOF, it's traditional credit underwriting.

"We're never trying to take a company through bankruptcy and own the equity in the back end. We're not trying to do any tricks. We're trying to ensure the company we are investing in pays it back at par," says Jeremiah Lane, Partner and Portfolio Manager at KKR. 

So what is the secret to running a long-standing credit fund with solid returns even when other investors struggle to find yield in a zero interest rate era? 

In this edition of Fund in Focus, we speak to Lane about the GCOF in depth. Find out what makes KKR's credit fund different from others in the market, the characteristics of the assets inside the portfolio, and why he is still confident the fund can outperform the market even as it goes through a regime change.

Timecodes

• 0:00 - Intro
• 0:21 - The key features of GCOF
• 1:26 - What is the fund's "north star"?
• 2:21 - What are the fund's key differentiators?
• 3:26 - What market conditions does the fund aim to capitalise on?
• 6:09 - Where can I access the fund and what is one last message you want to leave investors with?