"We're turning down most of the deals we see to focus purely on exactly those very few deals that the GPs really want to hold onto," said CEO Benoît Durteste.
The single-asset transaction allows the Italian manager to retain its investment in Valsa Group alongside new co-controlling shareholder PX3 Partners.
The planned offering will sit within KKR Solutions, a platform spanning sports investments and GP financing that CFO Rob Lewin expects to grow to more than $100 billion in AUM over time.
Mill Reef Capital Fund III will continue the Swiss firm's strategy of investing in smaller, often bespoke GP-led secondary transactions in Europe's small-buyout and lower-mid-market segments.
The strategy, anchored by a Korean institutional investor, has adopted an evergreen semi-liquid structure aimed at capturing emerging credit secondary opportunities throughout the cycle.
Following the establishment of a dedicated GP-led secondaries team earlier this year, the London-based firm has reportedly secured around €1 billion at first close.
The vehicle aims to build a portfolio of around 15 middle-market companies, primarily in Europe, through GP-led secondary strategies and direct minority co-investments.
SecondaryLink outlines the MOIC, IRR, and DPI of several ICG-managed secondary funds.
The London-based manager has shelved plans for the strategy's mid-market version, to avoid overlap with the upcoming large-cap vehicle.
