Rudy Pimentel
About Rudy Pimentel
Rudy Pimentel (born 1969) is President and Chair of the Board at KKR Income Opportunities Fund (KIO) and serves as an Interested Trustee; he became President in December 2023 and has served as a Class III Trustee since January 2024 with a term expiring in 2026 . He is a Managing Director at KKR (since 2022), previously Vice President and head of fixed income product management at T. Rowe Price (2017–2022), earlier Executive Vice President leading the U.S. credit strategies team at PIMCO, and started in crude oil trading and engineering at Chevron; he holds a B.S. in Mechanical Engineering (UCLA), an MBA from Kellogg (Northwestern), and is a CFA charterholder . He oversees two registered investment companies within the fund complex and holds no other public company directorships per the proxy .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| KKR | Managing Director, Global Product Strategy; Credit Strategies team | 2022–present | Product development and capital raising for credit strategies |
| T. Rowe Price | Vice President; Head of Fixed Income Product Management | 2017–2022 | Led fixed income product management |
| PIMCO | Executive Vice President; led U.S. credit strategies team | — | Leadership across U.S. credit strategies |
| Chevron | Crude oil trading and engineering roles | — | Commodities trading/engineering foundation |
External Roles
| Body | Role | Years | Notes |
|---|---|---|---|
| KKR Income Opportunities Fund (KIO) | Chair of the Board; President; Interested Trustee (Class III) | Chair/President: since Dec 2023–present; Trustee since Jan 2024 (term to 2026) | Board Chair with no Lead Independent Trustee; day-to-day managed by officers; oversight by Board |
| Fund complex oversight | Trustee oversight count | — | Oversees 2 registered investment companies within the fund complex |
| Other public companies or registered funds (outside complex) | Director | — | None |
Board Service & Governance
- Board composition: five Trustees, four Independent; Pimentel is the sole Interested Trustee (affiliated with the Adviser) and serves as Chair; the Board currently has no Lead Independent Trustee .
- Committees: Audit and Nominating Committees comprise solely Independent Trustees; Audit chaired by Lourdes Perez‑Berkeley (audit committee financial expert); Nominating chaired by Jeffrey L. Zlot .
- Meetings and attendance: The Board met six times in FY2024; each Trustee then serving attended at least 75% of Board and applicable Committee meetings .
- Rationale for dual role: Board states Pimentel’s experience supports his Chair role; potential conflicts addressed via independent committee composition and separate executive sessions of Independent Trustees .
Fixed Compensation
| Component | FY2024 value/structure | Notes |
|---|---|---|
| Fund-paid compensation to Pimentel (Trustee/Chair) | $0 | As an Interested Trustee, he is not compensated by the Fund or Fund Complex for trustee service . |
| Officer (President) salary/bonus paid by Fund | Not disclosed | Officers are listed, but the Fund does not disclose officer pay; Interested Trustee status indicates compensation is via affiliate (Adviser), not the Fund . |
Independent Trustee fee schedule (context; not applicable to Pimentel):
| Fee type | Amount |
|---|---|
| Annual retainer | $52,500 |
| Regular meeting fees (assumed quarterly; total annual) | $21,000 |
| Special telephonic meeting fees (total annual) | $3,750 |
| Committee meeting fees (excl. Audit) | $6,000 |
| Audit Committee meeting fee | $6,750 |
Trustee compensation paid in FY2024 (selected):
| Trustee | Aggregate compensation from KIO | Total compensation from Fund Complex |
|---|---|---|
| Rudy Pimentel (Interested) | $0 | $0 |
| Michael E. Cahill (Independent) | $35,625 | $71,250 |
| Catherine B. Sidamon‑Eristoff (Independent) | $35,625 | $133,452 |
| Jeffrey L. Zlot (Independent) | $35,625 | $71,250 |
Performance Compensation
| Metric/design | Target | Actual | Payout | Vesting | Notes |
|---|---|---|---|---|---|
| Fund-level annual bonus, PSUs/RSUs, options for Pimentel | — | — | — | — | Not disclosed in proxy; as an Interested Trustee receiving $0 from the Fund, any incentive plan would be via KKR (Adviser), not KIO . |
- Clawbacks, tax gross-ups, deferred compensation, pension/SERP: Not disclosed for Pimentel; the Fund’s deferred compensation plan applies to Independent Trustees only (participants noted), not to Interested Trustee Pimentel .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership in KIO | Dollar range: Over $100,000 |
| Aggregate dollar range across fund family | Over $100,000 |
| Ownership as % of outstanding | Not disclosed (proxy reports dollar ranges only); all Trustees/officers as a group owned <1% of outstanding |
| Shares outstanding (Record Date: Feb 7, 2025) | 40,870,580 Common; 2,000,000 Preferred |
| Pledging/hedging | Not disclosed in proxy |
| Ownership guidelines | Not disclosed in proxy |
| Insider trading (Forms 4) | Recent Form 4 data not retrieved here; monitor filings for any sales/awards to assess selling pressure (analysis based on proxy only) |
Note: Independent Trustees can elect to defer fees into Fund-linked accounts under the deferred compensation plan; this plan is not applicable to Pimentel’s Fund compensation because he receives $0 as an Interested Trustee .
Employment Terms
| Term | Detail |
|---|---|
| Appointment | Announced via 8‑K: Board appointed Pimentel to replace former Chair/President; filing dated Jan 2, 2024 . |
| Current Fund roles | President (since Dec 2023); Chair of the Board; Class III Trustee since Jan 2024 (term expires 2026) . |
| Contract term, auto-renewal | Not disclosed in proxy . |
| Severance/change‑of‑control | Not disclosed in proxy; no Fund-paid arrangements disclosed for Pimentel . |
| Non‑compete/non‑solicit, garden leave, consulting | Not disclosed in proxy . |
Performance & Track Record (qualitative)
- Selection rationale: Board cited character, integrity, leadership in KKR’s Global Product Strategy and prior roles at T. Rowe Price and PIMCO as reasons for his selection to the Board .
- Audit oversight context: Independent Audit Committee (not including Pimentel) reviewed FY2024 financials and recommended inclusion in the Annual Report .
Compensation Committee Analysis
- Trustee compensation and annual review are handled by the Nominating Committee (all Independent Trustees); the Committee reviews and approves Trustee compensation at least annually .
- No separate Compensation Committee for executive officer pay (typical for closed‑end funds); officer compensation for Interested Trustees is not paid by the Fund and is not disclosed .
Related Party Transactions and Conflicts
- Interested status: Pimentel is an Interested Trustee due to his employment with an affiliate of the Adviser; this dual role (Chair + Interested Trustee) is acknowledged, with conflicts mitigated via independent committee structures and separate sessions of Independent Trustees .
- No specific related‑party transactions involving Pimentel are disclosed in the proxy excerpts provided .
Say‑on‑Pay & Shareholder Feedback
- The proxy discloses election proposals and voting mechanics; no say‑on‑pay items are presented (typical for closed‑end funds), and no say‑on‑pay outcomes are disclosed .
Expertise & Qualifications
| Attribute | Evidence |
|---|---|
| Credit/investment product strategy | MD at KKR Global Product Strategy; Credit Strategies team |
| Fixed income leadership | Led fixed income product management (T. Rowe Price); led U.S. credit strategies (PIMCO) |
| Technical/analytical foundation | B.S. Mechanical Engineering (UCLA); MBA (Kellogg); CFA charterholder |
Investment Implications
- Alignment: Pimentel’s beneficial ownership exceeds $100,000, an alignment positive; however, the proxy provides only dollar ranges (not share counts) and indicates insiders as a group own <1% of outstanding, suggesting modest absolute ownership at the Fund level .
- Pay-for-performance linkage: Pimentel receives $0 in Fund-paid trustee compensation and officer pay is not disclosed by KIO; compensation is thus likely determined by the Adviser (KKR), implying limited direct linkage between KIO-specific performance and his cash/equity compensation at the Fund level .
- Governance risk/mitigation: Dual role as Chair and Interested Trustee without a Lead Independent Trustee can elevate governance risk, though KIO mitigates through fully independent Audit and Nominating Committees and independent executive sessions; continued monitoring of committee effectiveness and Board self-assessments is prudent .
- Trading signals: Proxy shows meaningful dollar‑range ownership but lacks transaction detail; monitor future Forms 4 for awards/sales to gauge potential selling pressure, and monitor any changes in beneficial ownership disclosures in subsequent proxies .
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