JPMorgan Chase-led bank group reins in credit line to troubled KKR private credit fund as losses mount

The JPMorgan Chase Co. building before the ribbon cutting ceremony, at the firm's new headquarters at 270 Park Avenue, in New York City, U.S., Oct. 21, 2025. Eduardo Munoz | Reuters A JPMorgan Chase -led group of banks cut their exposure to a private credit fund co-managed by KKR days before the asset manager announced it was spending $300 million to prop up the troubled vehicle. The fund, FS KKR Capital Corp., said Monday in a release that KKR will inject $150 million into the fund as equity and spend another $150 million to buy shares from investors who want to exit. Those moves, labeled "Strategic Value Enhancement Actions" by the fund, came after the JPMorgan-led group on May 8 slashed its credit line by $648 million, or about 14%, to $4.05 billion. Some lenders may have exited entirely rather than extend their commitments, according to the filing. The fund, co-run by KKR and the alternative asset manager Future Standard and often referred to by its ticker, FSK , has become one of the most visible fault lines in the private credit story. Its shares have plunged by nearly half over the past year and trade at a deep discount to the fund's net asset value. In March, Moody's downgraded FSK's ratings to junk amid mounting stress in the portfolio. Since then, loans to software maker Medallia and dental services firm Affordable Care have stopped paying interest, executives said Monday. …