The global capital markets are evolving, reshaping the way businesses capitalize themselves. Much like a Swiss Army knife equipped for diverse needs, Capital Solutions provide a dynamic framework that responds to changing financial landscapes and business objectives, anchoring itself at the nexus of public and private markets. Traditional and siloed financing structures — pure debt or equity — are ceding share to structured cross-asset solutions that blend elements of both, enhancing adaptability for companies in an ever-shifting landscape.
Capital Solutions represent an emerging category of corporate finance designed to bridge the gap between more fragmented debt and equity markets. By bringing together elements of both asset classes, Capital Solutions can provide value to businesses by addressing a broad range of demands. Capital Solutions offer businesses flexibility beyond traditional debt or equity, helping owners and management teams unlock value, drive growth, and navigate complexity with strategic agility.
EXHIBIT: Forward-Looking Expected Range of Outcomes Will be Narrower, We Believe
Expected Return Range of Outcomes (%)
With the potential for both contractual return and equity participation, Capital Solutions can appeal to a range of investors across debt, equity, and private equity, depending on risk appetite, structure, and objectives. We believe it can fit well within either a credit or equity allocation, offering a dynamic way to capture value across market cycles with consistent deployment. By blending credit and equity-like exposure, Capital Solutions can also enhance portfolio diversification, providing investors with a versatile tool to augment portfolio construction. As we like to say at KKR, origination begets origination. By structuring Capital Solutions and demonstrating their value to businesses and stakeholders, we steadily advance the market’s familiarity with the asset class and create new opportunities.
