Sallie Mae launches private credit strategic partnership with KKR

Sallie Mae (SLM) announced a multi-year strategic partnership with KKR (KKR). Through this multi-year engagement, KKR expects to purchase an initial seed portfolio of private education loans followed by a minimum of $2B in newly originated private education loans annually, for an initial three-year term. KKR’s investment comes from KKR-managed credit funds and accounts via the firm’s Asset-Based Finance strategy. Sallie Mae will maintain the relationships with customers and retain servicing for loans sold to KKR and will earn ongoing fees from KKR for providing servicing, program management, and industry expertise.