Mavik, an investment firm that specializes in commercial real estate distress, disclosed that it holds a 5.4% stake in KKR Real Estate Finance Trust Inc., also known as KREF, a lender managed by KKR & Co. The firm believes KREF may sell its loan portfolio at or around book value.

KREF said last month it was exploring strategic options, including a merger or a sale of the company, even as it works to resolve troubled legacy loans and reposition its portfolio. Mavik’s investment signals confidence that a transaction could be forthcoming.

The move highlights growing interest in distressed CRE assets, with Mavik focusing on such opportunities while KKR’s real estate lending arm faces pressure to address non‑performing loans and strengthen its balance sheet.

Market observers will watch whether KREF pursues a sale or merger, as the outcome could affect KKR’s real estate platform and broader commercial real estate lending trends.