KKR closes US$1.1b inaugural pan-Asia credit fund
Boo Zhixuan
KKR has announced the final close of its US$1.1 billion KKR Asia Credit Opportunities Fund (ACOF), which is focused on performing privately originated credit investments in Asia-Pacific.
In a press statement on Wednesday (May 25), the private equity giant said this marks the largest inaugural pan-regional fund focused on performing credit.
KKR noted strong support from both new and existing investors comprising public and corporate pensions, sovereign wealth funds, commercial banks, insurance companies, asset managers and private investment groups, and family offices.
Over US$100 million was invested by KKR, alongside external investors, into the fund through its balance sheet and employee commitments.
The firm also said ACOF is one of the largest inaugural pan-regional credit funds to have been raised for Asia-Pacific as at the time of closing.
KKR has closed 14 credit investments in the region alone since 2019, which accounts for US$2.4 billion invested by KKR and a total transaction value of US$4.7 billion.
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Sectors which received acquisition financing and capital solutions from the fund include environmental services, real estate, education, infrastructure and healthcare.
Ming Lu, head of KKR Asia-Pacific, sees limited financing options to keep pace with “rapid growth” in Asia as it continues to benefit from favourable macroeconomic trends.
“We believe these dynamics provide an attractive landscape for alternative asset managers like KKR who are able to provide more flexible and differentiated credit solutions than traditional lenders,” he said.
Likewise, the firm’s head of Asia credit, Brian Dillard, noted “compelling opportunities for alternative credit providers” amid an environment of limited non-bank supply.
“With ACOF, we are excited to play a larger role in meeting this unmatched demand and assisting leading businesses and sponsors across the region to meet their long-term growth ambitions.”
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