Alternatives-focused research and investment group Altegris has launched the Altegris KKR Commitments Fund, which will give accredited investors exposure to KKR funds via primaries, secondaries and co-investments, according to a statement.
“Altegris is providing investors with a portfolio spanning multiple private equity styles, geographic regions and life cycles, from newly established primary investment funds through mature secondary investment funds, all via a single subscription,” Altegris chief executive officer Jon Sundt said.
Sundt estimates close to $1 billion of limited partnership interests in KKR funds have traded on the secondaries market, which gives the Altegris KKR Commitment Fund ample opportunity to buy into KKR vehicles.
The fund is open to investors with a net worth of $1 million or more, excluding their home. Altegris’ clients span high-net-worth individuals, wealth managers, family offices and investment advisors, Sundt explained to Secondaries Investor.
Each investor has to give a ‘one-and-done’ commitment of at least $25,000. The minimum investment period is two years, although Altegris recommends a five-year holding period, Sundt added. The firm expects to garner thousands of investors and will begin investment the fund once it reaches $25 million.
“We have the ability to cap the fund but that’s a high-class problem and we’ll cross that bridge when we get there,” said Sundt.
The Altegris KKR Commitment fund is the first of its kind and KKR was selected as the focus of the fund because of its track record in partnering with portfolio companies’ management teams, its global footprint and its insight into local economies, the statement disclosed. The firm’s commitment to environmental, social and governance factors was also noted.
“KKR is the preeminent private equity fund with a 38-year history,” Sundt said. “We needed to work with a seasoned private equity firm with multiple access points for proper diversification.”
The fund’s investments will be recommended by The StepStone Group, which is serving as a sub-advisor to Altegris.
“Our global platform and proven research-focused investment approach position us well to assist Altegris in its goal of creating a top performing portfolio of alternatives investments,” Monte Brem, CEO of StepStone said in the statement.