The new business division is to be called KKR Asset Management, the firm said in a statement. The KKR Fixed Income business unit will become part of the new asset management operation. Under the change, Mr Sonneborn will succeed Saturnino Fanlo, who is chief executive of KFI, KKR Financial Holdings and KKR Strategic Capital Management, and David Netjes, chief operating officer of  KFI, KFN and SCF, who are both leaving the firm.

Prior to joining KKR, Mr Sonneborn was chief operating officer of The TCW Group, an investment management firm with over $130 billion in assets.

"The dislocation in the capital markets is challenging for all asset managers. At the same time, we believe it may result in good investment opportunities. We will be taking the right steps to weather today's turbulence and capture future opportunities," said Mr Sonneborn.

Mr Sonneborn will also become chief executive of KKR Financial Holdings, a NYSE-listed company and one of the entities managed by KKR Asset Management.