KKR launches Akrapoint with $350 million commitment for equipment finance

According to InsuranceNewsNet, KKR has launched Akrapoint Commercial Capital, a mid-ticket equipment finance company, with a $350 million commitment through its Asset Based Finance strategy.

What KKR actually launched, and where the $350 million sits

Akrapoint is being established by “a team of experienced industry professionals and KKR,” with the $350 million commitment coming from investment funds managed by KKR through its Asset Based Finance (ABF) strategy, according to InsuranceNewsNet’s publication of the Business Wire release. Reuters’ write-up via Investing.com UK similarly described Akrapoint as a mid-ticket equipment finance company backed by that $350 million commitment.

The release says Akrapoint plans to connect manufacturers, equipment vendors, and customers by offering flexible financing options intended to back equipment purchases and business growth, according to InsuranceNewsNet, citing Business Wire.

The people KKR picked to run it

KKR named Nate Smith as Akrapoint’s chief executive officer. In the Business Wire release carried by InsuranceNewsNet, Smith is described as having spent nearly a decade at Trans Lease, with responsibility for credit, portfolio management, funding, and compliance, and with work expanding the company’s capital markets function.

Gary Shivers will chair Akrapoint’s board. According to the Business Wire release, Shivers built Navitas Credit Corp and grew it into a nationwide platform, reaching more than $1.8 billion in assets, and earlier in his career he held senior posts at Advanta Leasing Corp and Marlin Business Services, now PEAC Solutions (InsuranceNewsNet, citing Business Wire). A Reuters brief carried by Investing.com UK also noted Shivers’ Navitas background and repeated the more than $1.8 billion assets figure.

The release notes Akrapoint is led by CEO Nate Smith and supported by a management team with decades of equipment finance experience, with Gary Shivers serving as board chair, according to InsuranceNewsNet, citing Business Wire.

Why ABF scale matters more than the logo on the term sheet

KKR’s pitch, according to the Business Wire release, is that Akrapoint pairs “disciplined underwriting” with stable, long-term capital. The capital comes from KKR’s ABF platform, which KKR says it established in 2016 and has grown to more than $91 billion in ABF assets under management with about 60 ABF professionals globally (InsuranceNewsNet, citing Business Wire). Reuters’ item carried by Investing.com UK also reported the more than $91 billion AUM figure and the approximate 60-person global team.

KKR says its Asset Based Finance strategy includes more than 20 captive platforms and is organized around four themes: Consumer/Mortgage Finance, Commercial Finance, Hard Assets, and Contractual Cash Flows, according to InsuranceNewsNet, citing Business Wire.

Where this shows up first for procurement and ops teams

The platform is expected to provide financing for vocational assets, specialty trailers, and industrial equipment aimed at small and middle-market businesses. The announcement names manufacturing, energy and power, sanitation and waste services, construction, and transportation and logistics as target industries.

For procurement leaders running RFPs or preferred-supplier programs, the release describes Akrapoint as a platform meant to align manufacturers, equipment vendors, and customers through flexible financing offerings, according to InsuranceNewsNet, citing Business Wire.

The near-term milestones to watch

Akrapoint is based in Denver, Colorado, and has additional offices across the U.S., according to the Business Wire release published by InsuranceNewsNet. The same release says Nomura Securities International served as financial advisor and Kirkland & Ellis LLP served as legal counsel to KKR.