David Golub acknowledges rising defaults as KKR & Co Inc navigates a turbulent private credit market.
David Golub, CEO of KKR & Co Inc, has acknowledged the rising defaults impacting the private credit industry as the market faces significant challenges. The company is navigating a landscape where distressed loans have reached their highest levels since 2017, with the median proportion of non-accrual loans among top Business Development Companies rising to 2.8% in the second quarter of 2026. KKR & Co Inc currently faces increased credit stress, with 7.1% of its loan portfolio consisting of problematic loans. Despite these challenges, the company maintains a strong GF Scoreâ„¢ of 86/100, particularly excelling in growth and valuation metrics. Analysts suggest the stock is currently undervalued by 13.9% compared to its market price, offering a margin of safety for investors. The private credit sector is evolving toward a continuous assurance model, where independent verification of collateral and ongoing portfolio monitoring are becoming essential for maintaining investor confidence and operational resilience in a competitive market.