KKR completes $15 bn Asia fund, says it has 'tremendous potential'

Global firm KKR announced on Tuesday the final close of a $15 billion fund focused on investments in private equity transactions in the Asia Pacific region. KKR Asian Fund IV will invest approximately $1.3 billion in capital alongside fund investors through the firm.

“Over the last 16 years we have strategically built our Asia Pacific platform and diverse regional team to unlock what we believe are some of the most compelling investment opportunities in the world given Asia Pacific’s growth and dynamism,” said Ming Lu, head of KKR Asia Pacific.

“Our new flagship private equity fund meaningfully adds to our multi-asset platform and strengthens our investment position across the region. We are grateful to our investors who have acknowledged the success of our Asia Pacific strategy and share our conviction in the tremendous potential that the region’s businesses hold,” he said.

The firm said in January it had completed its inaugural pan-regional infrastructure and real estate funds: the US$3.9 billion Asia Pacific Infrastructure Investors Fund and US$1.7 billion Asia Real Estate Partners Fund.

“The opportunity for private equity investment across the Asia Pacific is phenomenal. While each market is unique, the long-term fundamentals underpinning the region’s growth are consistent – the demand for consumption upgrades, a fast-growing middle class, rising urbanization, and technological disruption,” said Hiro Hirano, Co-Head of Asia Pacific Private Equity at KKR.

“Companies across the Asia Pacific are recognizing their potential to become not only national and regional champions but also global leaders in their industries,” said Ashish Shastry, Co-Head of Asia Pacific Private Equity at KKR. “Today, with Asian Fund IV and KKR’s local-global partnership approach, we are better positioned than ever to support the expansion of the companies that fuel Asia Pacific’s economy, fund their innovation, and build technology leaders.”

KKR Asian Fund IV is currently the largest private equity fund dedicated to investing in the Asia Pacific region. The Fund, which exceeded its target size to reach its hard cap for fund investors’ commitments, received strong support from a diverse group of new and existing global investors, including strong representation by Asia Pacific-based investors, it said.

“The overwhelming response for Asian Fund IV validates our strategic focus and investment discipline, especially given the competitive and current environment. We are grateful for the trust that our existing and new fund investors have placed in KKR and we are confident that our talented Asia Pacific team will continue delivering outstanding results,” said Alisa Amarosa Wood, KKR’s Head of Private Markets Strategies Group.

KKR launched its Asia Pacific platform in 2005, and now has over US$30 billion in assets under management in the region across strategies, including private equity, infrastructure, real estate, and credit. KKR’s Asia Pacific Private Equity portfolio currently includes investments in approximately 60 companies in 11 countries across the region.

Gaurav Trehan, Partner at KKR India said "India is an important part of KKR’s Asia Pacific investment strategy across all our asset classes. The country’s dynamic population and strong economic fundamentals are fueling the growth of India’s innovative and disruptive homegrown companies. The successful close of Asian Fund IV further enhances our ability to bring KKR’s trusted partnership approach, global network and deep industry expertise to Indian entrepreneurs, founders and management teams as they position their businesses to capture the opportunities locally and overseas.”