-

KBRA Releases Research – Private Credit: CFO Growth and Performance

NEW YORK--(BUSINESS WIRE)--KBRA releases research on collateralized fund obligations (CFO), discussing their typical structure and common credit protections.

CFOs are specialized financial vehicles collateralized by the cash flows from a diversified pool of private capital assets—primarily limited partner interests and sometimes co-investments or secondary market fund positions—in multiple private capital funds. They are typically structured as special-purpose vehicles that issue one or more debt tranches alongside an equity tranche, attracting fixed-income investors with varying risk-return preferences. Although CFOs have been in existence since the early 2000s, issuance has picked up significantly in recent years. Between 2018 and 2024, KBRA assigned ratings to 152 tranches in 67 CFOs, totaling approximately $37.7 billion of issuance, which included $28.5 billion of rated debt with the remainder in equity or unrated debt.

This report also explores analytical observations related to KBRA-rated CFOs, issuance volume, and structural trends, as well as rating performance since inception.

Click here to view the report.

Recent Publications

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1008545

Contacts

Min Xu, Managing Director
+1 646-731-1463
min.xu@kbra.com

Ryon Aguirre, Managing Director
+1 646-731-1239
ryon.aguirre@kbra.com

Thomas Speller, Global Head of Fund Finance
+44 20 8148 1025
thomas.speller@kbra.com

Eric Neglia, Senior Managing Director, Global Head of Funds Ratings
+1 646-731-2456
eric.neglia@kbra.com

Media Contact

Adam Tempkin, Senior Director of Communications
+1 646-731-1347
adam.tempkin@kbra.com

Business Development Contact

Constantine Schidlovsky, Senior Director
+1 646-731-1338
constantine.schidlovsky@kbra.com

Kroll Bond Rating Agency, LLC

Details
Headquarters: New York City, New York
CEO: Jim Nadler
Employees: 400+
Organization: PRI

Release Versions

Contacts

Min Xu, Managing Director
+1 646-731-1463
min.xu@kbra.com

Ryon Aguirre, Managing Director
+1 646-731-1239
ryon.aguirre@kbra.com

Thomas Speller, Global Head of Fund Finance
+44 20 8148 1025
thomas.speller@kbra.com

Eric Neglia, Senior Managing Director, Global Head of Funds Ratings
+1 646-731-2456
eric.neglia@kbra.com

Media Contact

Adam Tempkin, Senior Director of Communications
+1 646-731-1347
adam.tempkin@kbra.com

Business Development Contact

Constantine Schidlovsky, Senior Director
+1 646-731-1338
constantine.schidlovsky@kbra.com

Social Media Profiles
More News From Kroll Bond Rating Agency, LLC

KBRA Assigns Preliminary Ratings to PMT Loan Trust 2026-CNF3

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 44 classes of mortgage-backed notes from PMT Loan Trust 2026-CNF3 (PMTLT 2026-CNF3), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-CNF3 comprises 589 agency-eligible, conforming mortgage loans with an aggregate stated principal balance of approximately $322.7 million as of the March 1, 2026 cut-off date. The underlying col...

KBRA Releases Research – Anatomy of Loss in Single-Borrower CMBS: A Loan-Level Analysis

NEW YORK--(BUSINESS WIRE)--KBRA releases research examining loss severities in the single-asset single borrower (SASB) commercial mortgage-backed securities (CMBS) sector. SASB transactions have grown to dominate post-global financial crisis (GFC) issuance, and while loan defaults in the sector have risen sharply since the onset of the pandemic, the sector's overall loss rate remains limited, as nearly three-quarters of SASB loans resolved after default experienced minimal to no loss. When loss...

KBRA Assigns Preliminary Ratings to Sequoia Mortgage Trust 2026-INV2 (SEMT 2026-INV2)

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 71 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-INV2 (SEMT 2026-INV2). The transaction consists of 1,118 investment property mortgages with an aggregate principal balance of $438.4 million as of the March 1, 2026 cut-off date. The collateral is characterized by a weighted average (WA) original credit score of 770 and moderate borrower equity, with a WA original LTV and WA original CLTV of 73.2%. KBR...
Back to Newsroom