KKR, the New York-based private markets heavyweight, announced it has closed its latest Asia Pacific private equity fund at $15 billion, a record for a PE fund focused on the region.
Roughly $1.3 billion of that total will be invested by KKR and its employees alongside the firm’s limited partners, according to a company news release.
The $15 billion close exceeded KKR’s target for the fund of $12.5 billion.
The fund attracted those record commitments in less than 1.5 years, at a time of unprecedented operational challenges for the industry due to the coronavirus pandemic, a spokeswoman for the firm said.
Asian Fund IV garnered commitments from 290 clients, a record for a KKR fund, with 80 investors new to KKR’s private equity offerings and clients accounting for 83% of the capital committed to Asian Fund III – which closed in June 2017 with $9.3 billion in commitments – signing up for the new fund as well, she said.
The fund has a wide remit 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 news release said.
Demand for consumption upgrades, a fast-growing middle class, rising urbanization and technological disruption are presenting “phenomenal” opportunities for private equity investments around the region, said Hiro Hirano, co-head of Asia Pacific private equity at KKR, in the news release.
The spokeswoman noted that a growing portion of the latest fund’s commitments – nearly 30% – came from Asia-based limited partners. It couldn’t immediately be learned what portion of KKR Asian Fund III investors in the region accounted for.
Institutional investors making commitments to the fund this year included the $35.6 billion South Carolina Retirement System Investment Commission, Columbia, which committed $100 million; the $282.5 billion California State Teachers’ Retirement System, West Sacramento, with $300 million and $63.9 billion Border to Coast Pensions Partnership, Leeds, England, with $94 million.