KKR has closed its first private credit continuation vehicle with more than $460 million for the loans of Lending Partners III, PitchBook reported on Tuesday. Allianz Global Investors led it. The same day PitchBook reported that Blackstone's secondaries arm bought part of a $1.3 billion portfolio of 22 co-investment stakes, priced at about 20% below net asset value. In addition, a new sponsor filed to list a fund of space-company stakes on the NYSE.

The tape

• FUND  Partners Group, whose gated fund's stakes moved this month, raised $510 million on 21 October in a second rated feeder for its evergreen credit strategy.
• FUND  Coller EQT, whose insurers' inflows ran here on 16 October, will sell its two wealth secondaries funds to Australian wholesale investors through Channel Capital.
• LP  Carlyle and Basic Capital will put Carlyle's private equity strategies into 401(k) plans through collective investment trusts under SEI Trust, announced on 21 October.
• FILING  Blue Owl, whose evergreen Cox Capital bids for, raised $493 million since October 2025 for a sidecar of its sixth GP stakes fund codenamed Hotshot.
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AllianzGI led KKR's first credit continuation vehicle

Allianz Global Investors has become the buyer that large lenders call when they want to keep their loans. Its newest purchase is KKR's first private credit continuation vehicle, which closed with more than $460 million of commitments, PitchBook reported on Tuesday. The vehicle holds the assets of KKR Lending Partners III, and AllianzGI led it. Its price and the share of investors who rolled were not reported, and no other buyer was named.

The vehicle's paper trail started three weeks earlier. On 5 October KKR's credit arm filed for three partnerships named Hudson 2026, as read here on 7 October. One of the filings named Evercore as placement agent, and two were promoted by the general partner of Lending Partners III. Those filings still show nothing raised, so the size comes from PitchBook alone for now.

Lending Partners III is a $1.5 billion direct lending fund that finished raising in 2017, PitchBook says. At its launch Private Debt Investor wrote that it was a six-year vehicle, so by this autumn the fund had passed its term. By 30 June 2026 it had returned a 11.0% net IRR and 1.7 times its capital, PitchBook read in KKR's quarterly filing.

AllianzGI now leads or co-leads three of the year's credit vehicles. Its first lead this year was Blackstone's credit continuation fund of about $1 billion, as read here on 9 October. It also co-led Crescent Capital's $3.2 billion vehicle earlier in the year, PitchBook says. Its senior portfolio manager Alexander Li said the firm had "drawn on our comprehensive private credit secondaries experience" in the KKR deal.

For reference, Evercore counted $20.4 billion of credit secondaries in the first half of 2026, more than in all of 2025. Of that total, GP-led deals were about 83%, page 3 of its July review shows. The same review says sponsors used the vehicles "before concentration increases and extensions beyond the original fund term become necessary", as read here on 20 October. KKR's vehicle fits that sentence, and the roll share is the next number to come.

Credit secondaries did as much in six months as in all of 2025, and GP-led deals were $17bn of the $20bn

$bn, Evercore's count by half-year and by year

Source: Evercore, H1 2026 Credit Secondary Market Review, p.3.

Blackstone bought co-investment stakes at 80% of NAV

Co-investment stakes sell for less than fund stakes, and the newest print puts the gap at about ten points. The print is Blackstone Strategic Partners' purchase of part of a $1.3 billion portfolio of co-investments on the secondary market, PitchBook reported on Tuesday, citing people familiar with the matter. The whole portfolio was priced at about 20% below its net asset value. That price compares with Jefferies' first-half print of 91% of NAV for buyout fund stakes, on page 5 of its July review.

The portfolio held 22 positions taken alongside managers including Carlyle, CVC, KKR, Blackstone and Insight Partners. KKR was the largest sponsor in it, at 18.5% of net asset value, with Environmental Resources Management, Groundworks and Optiv among its companies. The companies included Blackstone's own Advarra too. However, PitchBook does not name the seller, and Blackstone and KKR declined to comment. Blackstone had talked with investors about buying the whole portfolio together, then bought its portion alone, and part of the portfolio stays with the seller.

The discount has a contractual cause, which starts with the fund's terms. Those terms pass to the buyer of a fund stake with the general partner's consent. A co-investment stake, however, usually carries fee terms written in a side letter, and that letter does not pass to a buyer on its own. So the question is whether the letter follows the stake. The question was put to PitchBook by Jake Stuiver of William Blair, which was not involved in this sale. He put it this way: "Is the side letter transferable, and will the GP consent to it being transferred with full economic benefits?"

For instance, take a $50 million stake carried at value and held fee-free under the seller's side letter. Priced at 80%, the stake costs the buyer $40 million. The buyer then owes fees and carried interest that the seller never paid, if the general partner refuses to pass the letter on.

The co-investment portfolio sold about ten points below Jefferies' buyout print

% of NAV, Jefferies' first-half prices by strategy and the portfolio's reported price

Source: Jefferies, H1 2026 Global Secondary Market Review, p.5, and PitchBook, 27 October 2026.

Blackstone is buying while it raises. Its Strategic Partners X held $12.3 billion of commitments at 30 September against a $22.5 billion target, as read here on 22 October.

A space fund joins October's listed venture vehicles

The listed vehicle that buys private stakes has become a format that new sponsors copy. The format's fifth filing this month came from SpaceCorp, which filed on Tuesday to register a closed-end fund and list it on the NYSE as SPC. SpaceCorp will put at least 80% of its assets into what it calls the Space Economy, from launch and satellites to defense. Earlier in October Robinhood Ventures Fund I, Powerlaw Fund II, Madara and Powerlaw Corp filed theirs, as read yesterday.

Its adviser is FutureCorp Asset Management, a firm formed in May 2026 in Villanova, Pennsylvania. The firm's managing directors include Joshua Marks and Sudhin Shahani. Marks ran Anuvu, a satellite connectivity company, from 2018 until June 2026, and Shahani co-founded Surf Air Mobility. The filing also says that a private predecessor, FutureCorp PF I, will fold its holdings into the fund, and it does not list them.

The fund may buy stakes in late-stage private companies from their holders, take interests in venture funds, and invest in continuation vehicles and special purpose vehicles formed for one company. Its fee is 2.50% a year of gross assets, borrowed money included. Its share count and price are blank, to be filled in the amended filing that sets the offering.

Seen before the press

Neuberger Berman has set up a vehicle called Sapphire to pool money into one transaction. Neuberger Sapphire Aggregator LP filed its Form D from 1290 Avenue of the Americas on Tuesday, of indefinite size and with nothing raised yet. Its officers are Anthony Tutrone, who runs NB Alternatives, with David Stonberg and Jonathan Shofet of its private markets arm and three officers of its private debt business. Its own broker-dealer places it, with commissions to some employees. So the aggregator is most probably a client vehicle for a single deal, and the private debt names point to a credit transaction. It could also be a co-investment sleeve, and nothing about it has been announced.

On the radar

• Today, 8am, New York. Evercore reports its third quarter, its first call since Nigel Dawn became co-president, with KKR's vehicle among its closed mandates. The same day Cerebras' second early release frees up to about 19.4 million shares.
• Thursday 29 October, New York. Ares at 9am, Blue Owl at 10am and TPG at 11am report their third quarters. Their calls give what their secondaries funds and evergreens raised in the quarter.
• Friday 30 October, then the week of 9 November, Luxembourg. The new share classes of Partners Group's Global Value SICAV move to a 2.5% quarterly redemption threshold, half the current one. Shareholders then vote on splitting the €6.6 billion gated fund in two.
• Tuesday 3 November, 5pm, New York. Cox Capital's bids for Blackstone Private Credit Fund and HPS Corporate Lending Fund shares expire. Cox pays $20.65 for BCRED shares the fund valued at $23.51 on 30 September.
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