News & Analysis

Buyers became more selective and ultimately bid on LP-led deals for GPs and funds they knew best, according to Greenhill’s Bernhard Engelien.

The firm’s inaugural credit secondaries closed-end fund reached $4bn with the programme totalling $7.1bn, marking it the firm’s largest inaugural fundraise, CEO Michael Arougheti says.

‘We really like the idea of building a secondary platform with a blank sheet of paper,’ KKR CFO Rob Lewin said on the firm’s Q4 2025 earnings call.

Strong investor demand has already propelled the fund beyond its predecessor’s $5.2bn final close.

Private credit is one of the fastest-growing segments in the secondaries market, reaching at least $20bn in deal volume last year.

While some participants have described secondaries activity as somewhat subdued in the early part of the year, numerous deals continue to work through their processes that had been launched last year.

The original size of the portfolio CalPERS brought to the market is understood to be between $2.3bn and $3bn.

The semi-liquid fund will participate in GP stakes investments through a wide range of transaction types, with the largest share earmarked for secondaries investments.

The GP-led-focused fund is more than a quarter invested and will target lower mid-market deals in North America.

Hamilton Lane’s Infrastructure Opportunities Fund II exceeded its $1.25bn target and tripled the size of its predecessor.