KKR & Co. Inc. closed a $2.5 billion private‑credit fundraise focused on Asia Pacific, a move that more than doubles the size of its first Asia‑focused private‑credit fund of $1.1 billion closed in 2022. The new capital is split between $1.8 billion from the KKR Asia Credit Opportunities Fund II (ACOF II) and $700 million from separately managed accounts, giving the firm a robust platform to deploy performing, privately originated credit across the region.
The fund’s launch comes amid a widening supply‑demand gap in Asian private credit, where investors seek yield and diversification while borrowers face limited access to traditional bank financing. Economic decoupling and geopolitical risk have pushed firms to broaden exposure outside the United States and Europe, making Asia an attractive alternative. KKR’s pan‑Asia approach, backed by a local presence and a global platform, positions it to source senior and unitranche direct lending, capital‑solutions, and collateral‑backed investments that target low‑to‑mid‑teen net returns.
Management highlighted the strategic importance of the fund. Diane Raposio, Partner and Head of Asia Credit & Markets, said the close of ACOF II “demonstrates the breadth and scale we have built across our Asia credit platform, spanning both private and liquid markets.” SJ Lim, Managing Director and Head of Asia Private Credit, added that the fund “addresses strong demand for private credit as an important tool for sponsors and corporates seeking flexible financing solutions.” These comments underscore KKR’s confidence in the region’s growth themes—rising consumption, urbanization, and digitalization—while reinforcing its three‑pillar model of private equity, credit, and real assets.
The capital raise also signals investor confidence, with three‑quarters of the capital coming from new investors, including insurance companies, pension funds, sovereign wealth funds, family offices, banks, corporates, and asset managers. This mix reflects a broad appetite for private‑credit exposure in Asia, where the supply of credit is only one‑thirtieth of the private‑equity market, compared to one‑fourth in Europe. KKR’s track record—over 60 investments totaling $27.5 billion since 2019—provides a foundation for scaling the new fund’s deployment strategy.
The fund’s completion strengthens KKR’s Asia‑Pacific investment platform, complementing its private‑equity, infrastructure, and real‑estate initiatives. By expanding its credit capabilities, KKR is better positioned to capture yield in a region where traditional lenders are price‑sensitive and borrowers are increasingly seeking partnership‑oriented capital. The move also aligns with the firm’s broader strategy of leveraging its global network to deliver diversified alternative‑asset solutions to a growing base of institutional investors.
Overall, the $2.5 billion raise represents a significant milestone for KKR’s Asia credit strategy, doubling the previous fund’s size and reinforcing the firm’s leadership in a market that offers both attractive returns and strategic diversification for investors.
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