KKR founder rebuts market concerns, stating that private credit does not pose systemic risks

Henry Kravis, co-founder of KKR & Co., rebutted concerns that the crisis surrounding Tricolor Holdings and First Brands Group could signal broader issues in the private credit sector. "Everyone is saying, oh my gosh, private credit is going to have problems," Kravis said during an interview with Bloomberg reporter Francine Lacqua at the Global Dialogue Conference in Berlin on Thursday. While the U.S. has seen "two major bankruptcies" in recent weeks, "not a single penny came from private credit." Kravis pointed out that because investment firms like KKR do not take deposits, private credit as an asset class does not pose systemic risks