Global investment firm KKR has closed its maiden Asia credit fund, dubbed KKR Asia Credit Opportunities Fund (ACOF), at $1.1bn.
The new fund will focus on undertaking privately originated credit investments in the Asia Pacific (APAC) region.
It will seek to offer customised private credit solutions to firms and sponsors which harness the strength of KKR’s capabilities in alternative investment and its know-how of being one of the globally largest alternative credit managers.
KKR Asia Pacific head Ming Lu said: “Asia continues to benefit from favourable macroeconomic trends and long-term growth. However, the number of financing options available to companies looking to keep pace with this rapid growth has remained limited.
“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.”
KKR said that its Asia credit team will make use of its local and global resources for sourcing, diligence, and executing investment opportunities. The team is expected to offer bespoken financing, ensure the protection of capital, and support the creation of value.
According to KKR, its Asia credit fund is planned to mainly pursue investments in performing privately originated credit.
It will largely target opportunities across three primary investing themes. These include senior and unitranche corporate lending, finance investments based on assets, and subordinated corporate lending.
ACOF is said to be backed by a diverse group of new and existing investors. Among these are public and corporate pensions, commercial banks, sovereign wealth funds, insurance firms, private investment groups, asset managers, and family offices.
KKR said that it has invested more than $100m in the Asia credit fund alongside external investors.
KKR Asia credit head Brian Dillard said: “There is an imbalance of available financing for Asian businesses at a time when the region’s growth and prosperity have fueled an enormous demand for more flexible funding solutions by borrowers looking to seize the opportunities.
“With limited non-bank supply, we believe this market presents compelling opportunities for alternative credit providers like KKR.”
