KKR, global investment firm, is closing its US$15 billion Asian Fund IV, focused on investment in private equity transactions across the region.
The firm, which would be investing approximately US$1.3 billion in capital alongside fund investors through the firm and its employees’ commitments, said the fund was currently the largest PE fund dedicated to investments in the Asia Pacific region and had exceeded its target size to reach its hard cap for fund investors’ commitments.
This was thanks to its strong support from a diverse group of new and existing global investors, including strong representation by Asia Pacific-based investors, the firm said.
Through Asian Fund IV, KKR would plan 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, a strategy led by a team of approximately 70 investment professionals based in eight offices across six major Asia Pacific markets.
Earlier this year, KKR announced the final closings of 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 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,” Hiro Hirano, co-head of Asia Pacific Private Equity at KKR, said.
Ming Lu, head of KKR Asia Pacific, added that over the last 16 years KKR had built its Asia Pacific platform and diverse regional team to unlock what it believed were some of the most compelling investment opportunities in the world given Asia Pacific’s growth and dynamism.
“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 added.