KKR Raises $9.3B For Latest Asia-Pacific PE Fund

Jun 5 2017 | 9:25pm ET

Global alternative investment giant KKR has announced the final close of its third private equity fund to focus on Asia Pacific opportunities, raising $9.3 billion for what is now the largest buyout fund dedicated to the region. 

The new fund, named KKR Asian Fund III, received backing from a diverse group of new and existing global investors including pensions, sovereign wealth funds, insurance companies, endowments, family offices and high net worth individual investors, KKR said in a statement. It surpasses the company’s Asian Fund II, which raised $6 billion in late 2013 and is now fully deployed. 

Fund II has generated a gross IRR of 29.1% (net 20.6%) and a gross multiple of 1.5x as of March 31, 2017, KKR added. 

“The Asia market offers many compelling investment opportunities in private equity given its secular growth and attractive valuations,” said Joseph Bae, KKR member and managing partner of KKR Asia. “This flagship fund is a testament to KKR’s ability to drive meaningful growth and value creation in our investee companies as a partner of choice to leading Asian businesses, families and management teams.”

“We see a diverse set of opportunities across Asia Pacific stemming from rising consumption and urbanization trends in key markets as well as larger carve-out and cross-border transactions in countries such as Japan,” added Ming Lu, head of Asia private equity, in the statement. 

KKR and its employees reportedly committed approximately $800 million to Fund III, the second-largest internal commitment to a KKR fund.

Since KKR opened its first office in region in 2006, the company has invested more than $12 billion in Pan-Asia private equity investments in approximately 55 companies across 10 countries diversified by industry and sector. 

With the closing of Fund III, KKR’s private equity business manages more than $68 billion in assets worldwide. Founded in 1976, the company as a whole manages around $130 billion across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. 

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