KKR Launches First Asia-Pacific Credit Fund Raising $1.1 Billion

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Global private equity firm KKR has closed fundraising for an Asia credit fund worth $1.1 billion (approximately 1.4 trillion KRW), Bloomberg reported on the 24th (local time).

This fund, the largest Asia-Pacific credit fund to date, plans to invest across senior and hybrid bond corporate loans, subordinated corporate loans, and asset-backed finance investments. The majority of the investment allocations have already been finalized, with a primary focus on Australia and Southeast Asia, the company stated.

According to Brian Dillard, Head of KKR Asia Credit, the fund's investors include public and corporate pension funds, sovereign wealth funds, commercial banks, insurance companies, asset managers, private investment groups, and family offices. Internal employees also contributed over $100 million. The target return is in the mid-teens percentage range.

KKR's fundraising has been ongoing for the past 20 months, with more than half of the raised capital coming from Asia.

Dillard explained, "In an era of uncertainty and volatility, traditional capital is retreating," adding, "We are seeing an acceleration of opportunities for alternative capital as investment sentiment weakens due to concerns over geopolitics, inflation, and a potential U.S. economic recession."

Since 2019, KKR has completed approximately $2.4 billion in credit investments in the Asia-Pacific region (with a total transaction value of $4.7 billion) across 14 deals. As of March, it manages $184 billion in credit assets globally.