July 30 (Reuters) - Investment giant KKR said on

Wednesday it had raised $6.5 billion to provide asset-backed

financing, as companies and investors seek out credit

alternatives beyond traditional loans.

Asset-backed financing refers to loans backed by assets such

as mortgages or royalties that have predictable cash flows. Such

loans do not rely solely on a borrower's creditworthiness.

KKR said it had hauled in $5.6 billion for a fund, named KKR

Asset-Based Finance Partners II, and about $1 billion from

separate accounts focused on the same type of investments.

These funds give borrowers access to loans they might not

get from banks, as traditional lenders have been pulling back

from riskier loans due to strict regulations. The funds also

offer firms such as KKR exposure to investments with consistent

returns.

"The $6 trillion ABF market, expected to top $9 trillion by

2029, remains undercapitalized despite its rapid growth," KKR's

Global Head of Private Credit, Daniel Pietrzak, said.

The latest fund attracted commitments from a wide base of

investors, including pensions, sovereign wealth funds, insurers,

asset managers and family offices, the company said.

KKR launched its ABF in 2016. It manages more than $74

billion in ABF assets under management.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by

Devika Syamnath)