Fundraising and Allocation Update (mid-September 2026): Infra Credit Mega-Raises, KKR Takes Europe's Evergreen Crown, Hedge Funds Enter Illiquid Credit

Fundraising and Allocation Update (mid-September 2026): Infra Credit Mega-Raises, KKR Takes Europe's Evergreen Crown, Hedge Funds Enter Illiquid Credit

Capital formation in private credit remains robust in institutional and infrastructure segments even as US retail BDCs bleed redemptions. The week of September 14–20, 2026:

• Blackstone is seeking at least $8 billion for a private credit fund focused on renewables and digital infrastructure investments (Bloomberg, September 15).
• Carlyle raised $2.3 billion for its infrastructure credit fund (Alternative Credit Investor, September 15).
• KKR passed Partners Group as Europe's largest manager of European-domiciled evergreen funds, with €13.6B ($15.6B) across its evergreen platforms in Q1 (Bloomberg, September 17) — as Partners Group grappled with withdrawal requests.
• KKR raised ~$15 billion for credit from third parties year-to-date, up 29% year-over-year (see Private Credit Moves Upmarket: KKR's $80 Billion Private Investment-Grade Origination Doubles on Insurer and AI Demand).
• Convergence now runs both ways: Millennium — a hedge fund, not a private credit shop — will close $22 billion of new commitments on October 1 and "has also reportedly discussed raising $3B for a less liquid credit fund" (Bloomberg via AGM Alts Weekly, September 20). Hedge funds are adopting private-markets lock-up structures to chase credit returns.
• Retailization infrastructure keeps building: Columbia Threadneedle and Hamilton Lane announced a strategic collaboration on an interval fund combining public and private exposure for the wealth channel; Great Gray Trust Company selected iCapital as its preferred partner to bring private markets into DC/401(k) plans (see ERISA Safe Harbor and the 401(k) Retailization Frontier).

One sign the redemption wave may be stabilizing outside the US: KKR-Income Trust I, its non-traded private credit fund for EMEA/APAC wealthy clients, received withdrawal requests of only ~2.5% of NAV in Q3 — "redemption requests ease[d], even as withdraw pressure continues across the North American private credit market" (see Q3 Redemption Wave Cools at the Flagships: Blue Owl Requests Fall to $4.2B, Goldman Fund Draws Inflows — but OTIC Still Climbs for the US gating picture).

Investor takeaway: the fundraising bifurcation is now stark — infrastructure credit, private IG, and hybrid evergreen platforms are absorbing capital at record pace, while US retail semi-liquid vehicles remain in a gating squeeze. The marginal buyer of private credit is shifting from US wealth-channel BDCs toward insurers, pension funds, and non-US evergreen channels.¹