We at KKR Financial Corp. are focused on generating attractive leveraged risk-adjusted returns for our investors by deploying capital across specific asset classes. See Asset Mix
Our rigorous and ongoing analysis of current and potential investments focuses on five major factors: credit standards, management quality, valuation, relative asset class valuation and our views on macroeconomic conditions. Consequently, across all of our investing activities, we are guided by the following key principles: |
View Diversified Investment
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- We have an intensive focus on credit, as part of our analysis of each investment opportunity, and we anticipate credit performance by analyzing competitive environment positioning and industry dynamics;
- We are driven by company and investment fundamentals, rather than “momentum”-driven investments.
Consistent with this, we invest in securities offered only by companies that meet the following criteria:
- Operate with a clear and understandable business model;
- Proven, ethical management team;
- Demonstrated ability to generate free cash flow and competitive returns on capital;
- Sustainable margins;
- Ability to withstand various economic environments;
- Sustainable competitive advantages;
- Favorable long-term industry trends;
- Sufficient liquidity.
Asset Mix
We meet our investment goals by executing a multi-asset class strategy which allows us to rotate sectors as indstry and economic factors indicate in order to generate the highest risk-adjusted returns, under our operating and tax model. This multi-asset class strategy is designed to help us achieve our earnings diversification objectives.
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