Global investment firm KKR & Co. Inc. has successfully completed a US $2.5 billion fundraising for its second private credit vehicle focused on the Asia-Pacific region, underscoring strong investor demand for alternative credit strategies in fast-growing markets. The latest fundraising comprises $1.8 billion for the KKR Asia Credit Opportunities Fund II and an additional $700 million from separately managed accounts targeting similar performing credit investment opportunities, making it the largest pan-regional private credit fund dedicated to performing credit in Asia-Pacific.

Key Highlights

• KKR successfully raised $2.5 billion for its Asia-Pacific private credit fund, reflecting strong global investor confidence.
• The fund will target performing credit opportunities across key Asia-Pacific markets, including India, Japan, and Australia.

This new fund significantly outpaces the firm’s first Asia-Pacific private credit vehicle, which closed at $1.1 billion in 2022, reflecting growing interest from institutional investors in diversified credit exposure beyond traditional bank lending. A large portion of the capital in the latest fund came from new investors, with backing from a broad mix of insurance companies, public and corporate pension funds, sovereign wealth funds, family offices, banks, corporates and asset managers. This broad investor base highlights confidence in both KKR’s private credit platform and the region’s economic prospects.

KKR’s Asia credit strategy, which has been active since 2019, has completed over 60 investment transactions across Asia-Pacific, deploying roughly $8.3 billion in capital and driving a total transaction value of approximately $27.5 billion across markets such as Australia, Greater China, India, Japan, Korea, New Zealand, and Southeast Asia. The strategy focuses on providing flexible financing solutions to companies and sponsors through bespoke credit investments, including senior and unitranche direct lending, capital solutions and collateral-backed opportunities.

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KKR’s success in raising the new Asia Credit Opportunities Fund II underscores the growing appeal of private credit in the region, as investors seek higher risk-adjusted returns amid a global environment where traditional bank lending still dominates but private credit markets are rapidly expanding.