(HedgeCo.Net) KKR is pushing a crisp message into 2026: don’t de-risk—upgrade. In its published outlook, the firm argues that the macro backdrop remains favorable but later-cycle dynamics demand “High Grading”—tilting portfolios toward quality, resilient capital structures, and scaled platforms where operational improvement and cash-flow underwriting still work. KKR+1
Infrastructure monetization: the Viridor example
KKR’s approach is also visible in infrastructure dealmaking and monetization. The Financial Times reported KKR nearing a deal to sell up to 50% of UK waste-management firm Viridor to Equitix, following years of operational improvement and value crystallization efforts. Financial Times
This is the infrastructure/private equity hybrid model in action:
- buy a real-asset platform,
- improve operations and cash flows,
- refinance / dividend / partial sale,
- keep optionality for further upside.
Why it’s trending: secondaries and partial exits
As exits remain uneven across private markets, partial realizations and structured liquidity (minority sales, GP-led secondaries, continuation vehicles) are becoming standard practice, not exceptions. That favors the mega-managers with deep capital markets capabilities.
Credit strategy is converging—but scale still matters
KKR’s own commentary on private credit emphasizes looking “under the hood,” suggesting credit opportunity in 2026 will be driven by complexity, partnership structures, and long-term relationships—not simply chasing yield. KKR+1