KKR Closes $15 Bn Asian Fund IV
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Global investment firm KKR on Tuesday announced the final close of KKR Asian Fund IV, a $15-billion fund focused on investments in private equity transactions across the Asia-Pacific region.
KKR will be investing approximately $1.3 billion in the capital alongside the fund through the firm and its employees’ commitments.
“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, Asia Pacific head, KKR. “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.”
In January, the Firm announced the final closings of its inaugural pan-regional infrastructure and real estate funds, the $3.9 billion Asia Pacific Infrastructure Investors Fund and the $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. We are excited by the diverse opportunities we see and are pleased to deepen our commitment to the region with the close of our new fund,” stated Hiro Hirano, Asia Pacific private equity co-head, KKR.
KKR’s Asia Pacific private equity platform takes a flexible investment approach with the ability to pivot across sectors and markets to pursue the most attractive risk-adjusted opportunities. Through Asian Fund IV, KKR plans to pursue opportunities stemming from rising consumption and urbanization trends, as well as corporate carve-outs, spin-offs and consolidation as companies look to optimize their portfolios.
“Companies across the Asia Pacific are recognizing their potential to become not only national and regional champions but also global leaders in their industries,” commented Ashish Shastry, Asia Pacific private equity co-head, 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 has been said to be 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.
“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,” added Alisa Amarosa Wood, private markets strategies group head, KKR.
KKR launched its Asia Pacific platform in 2005, and today has over $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.