(Bloomberg) -- KKR & Co. is seeking to raise a multi-billion-dollar direct lending fund in Europe that allows investors the option of depositing and withdrawing their cash more frequently than typical closed-ended vehicles.

The new euro-denominated fund, which primarily provides unitranche loans to European private equity-owned businesses, has a permanent capital structure, according to people with direct knowledge of the matter who asked not to be identified as the information is private.

This means investors can put in and withdraw cash on an ongoing basis, unlike more mainstream private debt funds where investors can have their capital locked up for as long as 10 years. Fund managers typically earn less in management fees with evergreen structures than they do with closed-ended vehicles.

A spokesperson for KKR declined to comment.

The world of private lending is becoming an increasingly attractive place for investors to park their cash, as funds now boast low double-digit returns for senior debt. Plus the floating-rate structures help protect the value of the assets in a world of rising rates. 

Other firms such as LGT Capital Partners have started up evergreen vehicles in Europe over the past few months. 

The launch comes amid a shake-up in leadership within KKR’s $76 billion private credit franchise. Dan Pietrzak has become the global head of private credit, the firm announced last Friday, as Matthieu Boulanger left the business to pursue other opportunities.

Read more: KKR Elevates Pietrzak in Credit Unit as His Co-Head Exits Firm

Michael Small will manage KKR’s direct lending efforts in Europe.

--With assistance from Lisa Lee.

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