KKR secured a €1.1bn unitranche financing package from a consortium of private credit lenders to support its acquisition of Karo Healthcare, replacing a previously arranged syndicated loan deal in favour of a more flexible private debt solution.

Apollo Global Management is leading the direct lending group, which also includes Goldman Sachs Asset Management, CVC, JPMorgan Chase, Jefferies, and KKR’s own credit platform. The facility combines senior and junior tranches into a single unitranche structure, priced at 475 basis points over Euribor with an original issue discount of 99.5, according to sources familiar with the transaction.

The move allows KKR to sidestep recent volatility in syndicated loan markets, particularly in light of macroeconomic uncertainty and tariff-related disruptions. Originally, a consortium of banks—including Citigroup, Jefferies, BNP Paribas, HSBC, and KKR Capital Markets—had arranged a €1.275bn financing package, which included €1.1bn in term loans and €175m in undrawn facilities.

By pivoting to private credit, KKR gains execution certainty and reduced exposure to syndication risk, underscoring a growing trend of sponsors favouring direct lenders for large-cap buyouts in Europe.

Source: Bloomberg