Key Takeaways
- • The ASX granted KKR Credit Income Fund (ASX:KKC) a three-year waiver from Listing Rule 10.1 on 22 September 2026, running until 22 September 2029, allowing the fund to reinvest in a KKR-affiliated vehicle without a unitholder vote on each transaction.
- • The target vehicle, KKR European Direct Lending (EEA) Feeder SCSp (Evergreen EDL), is a related party because KKR and KKR Alternative Investment Management share common ownership, and the waiver was required for the transaction.
- • KKC intends to reinvest proceeds from its maturing European direct lending holdings EDL II and EDL III, with EDL III's investment period ending 1 March 2027, and describes Evergreen EDL as a like-for-like replacement.
- • Without the waiver, KKC said it could become under-allocated to European direct lending; the ASX did not mark the announcement as price sensitive.
- • KKC reported net tangible asset backing of A$2.3114 per unit on 16 September 2026, a 0.06 per cent decline from A$2.3128 on 14 September, with an advertised monthly distribution of 1.67 cents per unit.
Summary
KKR Credit Income Fund (ASX:KKC), a listed investment trust whose units began trading on the ASX on 21 November 2019, required the exchange's permission to proceed with its next European investment because the target sits within the KKR group. On 22 September 2026 the ASX granted a three-year waiver from Listing Rule 10.1, which normally requires unitholder approval, supported by an independent expert's report, for related-party transactions above 5 per cent of equity. According to the article, the waiver allows KKC to move money into KKR European Direct Lending (EEA) Feeder SCSp, known as Evergreen EDL, without calling a unitholder vote each time.
The fund's earlier European direct lending holdings, EDL II and EDL III, are winding down. EDL III's investment period ends on 1 March 2027, and KKC intends to reinvest the proceeds in Evergreen EDL, which it describes as a direct replacement and a like-for-like change rather than a shift in strategy. KKC said that without the waiver it could become under-allocated to European direct lending. The waiver runs from 22 September 2026 to 22 September 2029 and carries conditions, including that investments follow the fund's disclosed objectives and strategy, that applications and redemptions follow the product disclosure statement, and that dealings occur on ordinary industry terms at prices consistent with those offered to other Evergreen EDL investors.
The fund is managed by KKR Australia Investment Management Pty Limited, with The Trust Company (RE Services) Limited as Responsible Entity and JP Morgan as administrator. As a feeder fund, KKC's performance depends on the valuation of its underlying vehicles and the pace at which they return capital. Net tangible asset backing was reported at A$2.3114 per unit on 16 September 2026, down 0.06 per cent from A$2.3128 on 14 September; these figures are unaudited and estimated by the administrator. The fund's website lists a monthly distribution of 1.67 cents per unit, or 20.04 cents over twelve months, though distributions are not assured.
The article notes the trade-off for unitholders: fewer meetings and less friction, but reduced direct say over transactions with a KKR affiliate. Risks cited include borrower default, valuation uncertainty for thinly traded private credit holdings, possible currency exposure, layered fees from investing through other vehicles, and concentration in European direct lending that could be affected by regional economic weakness. The next checkpoints are the ongoing net tangible asset announcements, monthly distribution updates, and the 1 March 2027 end of EDL III's investment period.
The fund's earlier European direct lending holdings, EDL II and EDL III, are winding down. EDL III's investment period ends on 1 March 2027, and KKC intends to reinvest the proceeds in Evergreen EDL, which it describes as a direct replacement and a like-for-like change rather than a shift in strategy. KKC said that without the waiver it could become under-allocated to European direct lending. The waiver runs from 22 September 2026 to 22 September 2029 and carries conditions, including that investments follow the fund's disclosed objectives and strategy, that applications and redemptions follow the product disclosure statement, and that dealings occur on ordinary industry terms at prices consistent with those offered to other Evergreen EDL investors.
The fund is managed by KKR Australia Investment Management Pty Limited, with The Trust Company (RE Services) Limited as Responsible Entity and JP Morgan as administrator. As a feeder fund, KKC's performance depends on the valuation of its underlying vehicles and the pace at which they return capital. Net tangible asset backing was reported at A$2.3114 per unit on 16 September 2026, down 0.06 per cent from A$2.3128 on 14 September; these figures are unaudited and estimated by the administrator. The fund's website lists a monthly distribution of 1.67 cents per unit, or 20.04 cents over twelve months, though distributions are not assured.
The article notes the trade-off for unitholders: fewer meetings and less friction, but reduced direct say over transactions with a KKR affiliate. Risks cited include borrower default, valuation uncertainty for thinly traded private credit holdings, possible currency exposure, layered fees from investing through other vehicles, and concentration in European direct lending that could be affected by regional economic weakness. The next checkpoints are the ongoing net tangible asset announcements, monthly distribution updates, and the 1 March 2027 end of EDL III's investment period.
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