The transaction forms part of a broader liquidity plan tied to shareholder approval of Rockford Tower as the CLO-focused fund's new sub-adviser.
Withdrawal requests at Barings Private Credit Corporation reached 10.68% of outstanding shares in Q3, with just 46.84% of validly tendered shares accepted on a pro-rata basis.
KKR FS Income Trust Select will satisfy liquidity demand in full after investors sought to withdraw 5.06% of outstanding shares in Q3.
OCIC and OTIC will buy back around $1.1 billion combined, leaving roughly $3.14 billion of Q3 demand unfulfilled.
The institutional investor plans an initial $200 million allocation, citing opportunities created by redemption pressures across wealth-channel credit funds.
The vote follows the board's termination of Octagon and clears the condition for the fund's previously announced liquidity plan.
"Octagon's proposals do not amount to a real plan forward," XAI president Kimberly Flynn exclusively told EvergreenLink.
Shareholders in the closed-end traded fund have until August 6 to approve the King Street sub-advisory agreement, as former sub-advisor Octagon denounced the decision arguing insufficient support.
The $580 million fund's former sub-adviser Octagon called the proposed tender offers "vote bait," while Egan-Jones maintained its recommendation against the proposed appointment.
The contested proxy campaign in the $580 million CLO fund was sparked by the board's decision to terminate Octagon as sub-adviser and propose Rockford Tower as its replacement.
