KKR has amended agreements with institutional backers to give its private equity vehicles for high-net-worth investors a larger share of future transactions, as demand from this segment accelerates, according to the Financial Times.

The changes affect its evergreen “K-Series” funds, launched in 2023 and already raising close to $12bn. These funds, which have no fixed term and offer periodic liquidity, will now be able to take up to around 20% of deal equity in certain cases, a significant increase from the historic 7.5% cap applied to affiliated vehicles, including employee capital pools.

To secure the change, KKR returned to investors in its recently closed $8bn European Fund VI and is seeking similar carve-outs for new flagship vehicles, including its 14th North American buyout fund. The revised terms ensure evergreen funds can co-invest more substantially alongside closed-end buyout funds.

While some limited partners initially expressed concerns, most have agreed to the adjustments. Larger allocations to evergreen vehicles could strengthen KKR’s position in competitive auctions, especially as higher interest rates push sponsors towards more equity-heavy deal structures.

The move comes ahead of a potential wave of individual capital entering private equity, following a US executive order enabling access to alternative assets within the $9tn retirement savings market.

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