By Allison McNeely | Updated on Oct 05, 2026 at 09:53 PM
KKR & Co.’s non-traded business development company KKR FS Income Trust Select slightly exceeded its quarterly redemption limit to meet all withdrawal requests, according to a shareholder letter.
K-FITS, a private credit fund for retail investors, received repurchase requests for 5.06% of shares for the period ended on Sept. 29, according to a filing Monday. The fund, which has a net asset value of $996 million, will slightly exceed its 5% redemption limit to satisfy all redemption requests.
“Given that repurchase requests only modestly exceeded the repurchase offer amount and in light of K-FITS’ available liquidity, the Fund intends to repurchase 100% of shares,” the firm said in a letter dated Sept. 30.
Alternative asset managers have been enforcing redemption limits on non-traded BDCs this year as concerns about underwriting standards and exposure to AI-threatened software borrowers stoked a surge of redemption requests. In the latest quarter, many major funds in the $1.8 trillion direct lending market have seen a dip in investors asking to pull their cash, but demand at K-FITS rose from 3.43% in the prior period.
Another fund, KKR FS Income Trust, also known as K-FIT, received repurchase requests totaling 1.53% of outstanding shares and will fulfill all requests, according to a separate letter, also dated Sept. 30. That was down from the 1.65% shareholders asked for in the prior period.
The funds pursue similar strategies but are managed and distributed separately. K-FIT’s inflows have outpaced repurchases over the first three quarters of the year, according to its letter.
K-FIT, which has a net asset value of about $1.7 billion, has generated an annualized net return of 12.67% since its inception in March 2023. K-FITS has generated an annualized 8.64% net return since its February 2024 launch.