When private equity firm Kohlberg Kravis Roberts sealed a deal with two Italian banks to take over approximately €1 billion of distressed loans, it represented a different tack for private equity firms trying to get control of the estimated €2 trillion of soured assets on European banks’ balance sheets

In June, KKR's credit division created a unit called Pillarstone to take on a portfolio of Italian credits from UniCredit and Intesa Sanpaolo, which is reported to include Rome's largest amusement park.