Servicer Evaluation: K-Star Asset Management LLC

S&P Global Ratings' ranking on K-Star Asset Management LLC (K-Star) is AVERAGE as a commercial mortgage loan special servicer. On Jan. 10, 2023, we assigned the ranking (please see "K-Star Asset Management LLC Assigned AVERAGE Commercial Mortgage Loan Special Servicer Ranking" published Jan. 10, 2023). The ranking outlook is stable. Our ranking reflects K-Star's: Well-designed organizational structure, along with experienced senior management, which includes executives who previously held leadership positions at other S&P Global Ratings-ranked commercial mortgage loan special servicers; Initial small staff size, albeit adequate for its near-term needs, and limited operating history as a new venture; Institutional commitment to the servicing platform and the CMBS business, accompanied by financial backing and shared resources provided by parent company, KKR

...K-Star was incorporated in April 2022 and is an indirect wholly owned subsidiary of KKR, a leading global investment firm that offers alternative asset management, as well as capital markets and insurance solutions. As of Sept. 30, 2022, KKR had approximately $496 billion in total assets under management (AUM), including approximately $64 billion of AUM in its global real estate business, which began in 2011. KKR is a leading global investment firm offering alternative asset management as well as capital markets and insurance solutions and is listed on the NYSE with approximately $40 billion in market capitalization. KKR has offices in 23 cities across four continents with more than 2,000 total employees. KKR Real Estate has offices in 15 cities across 11 countries that include more than 165 investment and asset management professionals, including approximately 65 who focus on real estate credit. In the second quarter of 2022, K-Star began hiring key executives and formed an organizational...

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