Latest news with #privatelending
Yahoo
a day ago
- Business
- Yahoo
KKR Just Raised $6.5 Billion to Attack a $9 Trillion Opportunity
KKR & Co. (NYSE:KKR) just locked in a massive $6.5 billion to fuel its biggest asset-backed finance push yet. The bulk$5.6 billionwent into its Asset-Based Finance Partners II fund, with another ~$1 billion from separately managed accounts. According to the firm, about 20% of the capital has already been put to work, and 65% is earmarked for US deals. The focus? Private asset-backed lending across sectors like auto loans, residential mortgages, and consumer debtareas where banks have been steadily pulling back, leaving room for deep-pocketed firms like KKR to step in. Warning! GuruFocus has detected 9 Warning Signs with KKR. KKR sees this as a generational opportunity. Daniel Pietrzak, the firm's global head of private credit, told investors the asset-backed market could grow to over $9 trillion by 2029. It's a big white space, he said, referencing the lack of large-scale capital chasing these deals. With more businesses ditching heavy balance sheets for asset-light models, KKR is positioning itself as a go-to financing partner. Recent activity includes a 40 billion transaction with PayPal and talks with PIMCO to acquire a stake in Harley-Davidson's financing armboth aimed at backing real assets outside traditional corporate lending. Since launching its asset-backed strategy in 2016, KKR has built a $74 billion-plus platform across consumer and mortgage debt, hard assets, equipment leasing, and more. What makes this raise notable isn't just the sizeit's the signal. Institutional capital is pouring into this space, and KKR is betting big on a structural shift away from bank-driven lending. For investors, it could be a glimpse into where the next credit cycle battleground will play outprivate, asset-backed, and increasingly scaled. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
2 days ago
- Business
- Associated Press
Arixa Capital Surpasses $6 Billion in Loan Originations
LOS ANGELES, July 29, 2025 /PRNewswire/ -- Arixa Capital, a leading private real estate lender, announced it has surpassed $6 billion in loan originations since inception. The company provides short-term loans ranging from $250,000 to $70 million to finance the acquisition, construction and/or renovation of single family, multifamily, and large-scale subdivision projects. 'In an uncertain market, reliability stands out,' said Greg Hebner, Managing Director. 'Arixa's growth to $6 billion is the result of our relentless focus on being a dependable capital partner, executing with speed and certainty, and striving to deliver service that goes above and beyond.' Six Figures That Tell the Story Behind the $6 Billion1 Arixa's growth has been driven by its commitment to delivering for clients. The six figures below highlight how that approach has fueled our trajectory. 750+ Clients Backed Across 20 U.S. States More than 750 professional real estate investors, developers, and builders across 20 states have turned to Arixa for its blend of local market expertise with the scale of a national platform. 100% of Credit Decisions Made In-House As a balance sheet lender, Arixa retains control over underwriting and approvals, allowing for more flexible terms, direct access to decision-makers, and certainty of closing in 10–14 days. 3–5 Days for Draws Arixa processes draw requests in-house, typically within 3–5 days. Each loan is managed by a dedicated team who stays with the client from underwriting to payoff to help reduce delays. 10,000+ Housing Units Built or Renovated Arixa has helped finance the construction or renovation of over 10,000 housing units across the U.S., representing a tangible contribution towards the national housing shortage. 95% Net Promoter Score2 With a 95/100 client satisfaction score, Arixa ranks among the top-performing lenders. This score is reflected in the high volume of repeat business from long-term clients. $1.7 Billion Over the Past Year Alone As banks retreated after the regional banking crisis, Arixa built a reputation as a reliable and resilient capital partner, driving over $1.7 billion in loan originations over the past 12 months. 'We haven't reached this $6 billion milestone alone,' added Seth Davis, Managing Director. 'This achievement reflects the trust of our institutional and fund investors, whose continued support has powered 15 years of strong partnership, performance, and capital preservation across market cycles.' With rising demand for dependable capital and the continued tightening from banks, Arixa Capital plans to expand its reach across key U.S. markets. The company recently announced additions to its loan origination team in Arizona, Colorado, Minnesota, and Texas. About Arixa Capital Founded in 2006, Arixa Capital is a leading private real estate lender and alternative investment manager with over $6.0 billion in originations completed since inception and over $1.8 billion of assets under management as of June 30, 2025. As an independent, employee-owned firm, we are personally invested in the success of our borrowers and investors. Our reputation for reliability, transparency, and exceptional service inspires long-term relationships and is the foundation of our growth and success. Arixa has been named one of the fastest growing private companies according to the Inc. 5000.3 The firm has offices in Los Angeles and Phoenix. To learn more about Arixa Capital, please contact: Greg Hebner Managing Director [email protected] Seth Davis Managing Director [email protected] For media inquiries, please contact: Steve Pavlov Vice President, Marketing [email protected] Endnotes 1All figures are based on Arixa Capital internal data as of June 30, 2025. 2The Net Promoter Score ('NPS') is a widely used measure of client satisfaction and loyalty, based on how likely clients are to recommend a company to others. The NPS calculation involves subtracting the percentage of detractors from the percentage of promoters, resulting in a number ranging from -100 to 100, where a higher score indicates a more loyal customer base. According to Bain & Company, the average NPS for U.S. SMB banks is 43/100. For more information about NPS methodology, please go to 3Arixa provided Inc. de minimis compensation to be considered for the Inc. 5000 list of the fastest growing private companies in the U.S. For a full description of ranking methodology, please visit: View original content to download multimedia: SOURCE Arixa Capital Advisors, LLC
Daily Mail
14-07-2025
- Business
- Daily Mail
America's top banker reveals Wall Street's hottest new trend that could spell financial doom - as he goes all in
America's top banker is pouring $50billion into a private lending phenomenon taking Wall Street by storm, despite acute concerns it could spark a market meltdown. JPMorgan Chase chief executive Jamie Dimon is spearheading a pivot for his institution, even as he voices fears about the boom in unregulated, private lending. Speaking to clients in Miami in February, Dimon compared the practice to the subprime mortgage fad which sparked the 2008 global financial crisis and laid waste to millions of American's livelihoods and sparked tough regulations in banking. Citing the mistakes bankers made which led to 'everything' blowing up in 2008, Dimon, who is considered the most successful banker in generations, said: 'Parts of direct lending are good, but not everyone does a great job. 'That's what causes problems with financial products.' Banks issued high-risk home loans to borrowers with poor credit histories, and when the initial low interest rates finally spiked, borrowers found themselves unable to pay their mortgages, triggering the collapse of the US housing market. These loans sparked a global credit crisis which ravaged the economy, wiping out trillions of dollars of household wealth and driving unemployment to record highs. Dimon warned the private lending trend - now worth a whopping $700billion - is a similar craze and there 'could be hell to pay' if the market ultimately falters. These loans are generally so risky that traditional banks would not approve, but highly indebted companies are seeking them out from privatized financial firms, the Wall Street Journal reported. They took hold in 2015, as private equity giants with money to spare from successful pension funds sought higher returns and began dabbling in corporate lending. Suddenly, businesses had the means to circumvent the big banks tough regulations, promised loans without the need to secure a credit rating and with more flexible terms. They could borrow more than banks would traditionally lend, and in exchange would have a higher interest rate, with payments tacked on to the back of the loan. According to the Federal Reserve's data from 2024, companies that went down the private loan route paid between two to three percent more than with traditional banks. Defaults have historically remained low, but economists fear this could change swiftly in a sustained recession or market downturn. As early as 2021, Dimon was warning shareholders that the entire scheme ' looked like a bubble' and would need to be 'assiduously monitored.' But he was also looking for the safest way to tap into the market. On the same day Dimon raised the alarm with clients about the risks, JPMorgan released a statement confirming it was increasing its 'direct lending commitment to $50 billion.' 'This strategic move is designed to extend the firm's direct lending capabilities and provide tailored private credit solutions to meet the evolving needs of clients,' the firm said. Under the new plan, corporate clients have the option to either take on a traditional loan or a private lending option, which could grant them access to more cash but see them saddled with a higher interest rate. 'Since 2021, J.P. Morgan has successfully deployed over $10 billion across more than 100 private credit transactions, serving both corporate and sponsor clients,' JPMorgan said in a February statement. 'This latest commitment underscores the bank's dedication to being a leader in both the broadly syndicated and private credit markets.' JPMorgan holds onto private loans and collects interest until it matures. Dimon has considered the risk and sees a path forward for JPMorgan to profit even if a crisis destroys the market. During the global financial crisis, a handful of bankers who predicted the crash were able to hugely profit by by betting against the very mortgage investments they sold to clients, making money as those investments ultimately collapsed. The crash happened when millions of Americans began to default on risky home loans, causing the value of those investments to plummet and triggering panic across the global financial system. Glenn Schorr, a senior analyst for Evercore, said: 'As a bank, you can only watch private credit come from nowhere and get to a trillion dollar industry for so long. 'This is what its clients are asking for.'
Yahoo
08-07-2025
- Business
- Yahoo
Why Sofi Technologies Stock Is Moving Upwards
July 8 - Shares of SoFi Technologies (NASDAQ:SOFI) climbed more than 3% on Monday, closing at $19.2, as investors weighed President Trump's proposed cap on federal student loans and the run?up to its July 29 earnings report. Warning! GuruFocus has detected 8 Warning Signs with SOFI. Under the tax plan now before the House, graduate borrowers would face tighter federal loan limits, potentially steering more borrowers toward private lenders like SoFi. That shift has underpinned this week's rally. SoFi enters its second?quarter report buoyed by a 20% revenue increase and a 200% jump in earnings in Q1, reinforcing confidence in its core lending and refinancing operations. Wall Street forecasts SoFi will post EPS of $0.06 and revenue of $801.8 million, down about 7% from a year earlier. Any upside surprise could reignite further gains. Analysts note that reduced federal support may widen SoFi's addressable market and boost loan volume, making the stock likely to remain in focus as policy developments unfold. With student?loan dynamics shifting and Q2 results on the horizon, SoFi's performance will be a key barometer for private lending growth. This article first appeared on GuruFocus.
Bloomberg
08-05-2025
- Business
- Bloomberg
Private Credit Fund Results Expose Pockets of Market Stress
From a custom tile maker to a funeral service provider, a number of companies financed by private lenders started showing signs of stress in the first quarter, according to recent results from business development companies. Market watchers say the trend is likely to accelerate as effects of the global trade war weigh on borrowers. Oaktree Specialty Lending Corp. marked down its position in Mosaic Companies, which makes specialty tiles for floors and walls, by 76%, after a sale of the company stalled.
