An affiliate of Kohlberg Kravis Roberts said it could lose as much as $290 million due to a fall in the value of mortgage-backed bonds it owns.
KKR Financial also confirmed it is seeking to postpone payment of $5 billion in short-term securities.
News of the projections comes after KKR Financial this week announced that it had sold $5.1 billion of mortgage bonds, through which it has lost $40 million.
The estimated $290 million loss would arise from the firm disposing its remaining $5.8 billion of mortgage-backed securities and assuming liabilities of up to $50 million.
“In light of the level of disruption and volatility in commercial paper and broader credit markets, estimates of potential exposure are necessarily subject to future revision,” says a statement from the firm.
Since the announcement of the losses, shares in KKR Financial Holdings have dipped 31 per cent.