On Tuesday, global alternative investments giant KKR announced the final close of its fourth Asian private equity fund (Asian Fund IV), a $15 billion mega fund that will pursue private equity transactions across the Asia Pacific region. KKR will invest around $1.3 billion in capital alongside fund investors 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, Head of KKR Asia Pacific. “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.”
News of the successful fund close builds on recent momentum across KKR’s Asia Pacific platform. In January, the Firm announced final closings of two inaugural pan-regional infrastructure and real estate funds. KKR’s $3.9 billion Asia Pacific Infrastructure Investors Fund will invest in defensive, low-volatility targets in waste, renewables, power and utilities, telecommunications and transportation infrastructure. Meanwhile, KKR’s $1.7 billion Asia Real Estate Partners Fund (AREP), which also closed in January, will focus on opportunistic investments in commercial, industrial and residential properties across Asia-Pacific, along with “emerging alternative sectors.”
Hiro Hirano, Co-Head of Asia Pacific Private Equity at KKR, said, “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.”
“Companies across Asia Pacific are recognizing their potential to become not only national and regional champions but also global leaders in their industries,” added Ashish Shastry, Co-Head of Asia Pacific Private Equity at 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.”
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. The 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.
KKR Asian Fund IV is currently the world’s largest private equity fund dedicated to investing in the Asia Pacific region. Asian Fund IV, 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,” said Alisa Amarosa Wood, KKR’s Head of Private Markets Strategies Group.
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 alone is currently invested in 60 companies in 11 countries across the region.
