KKR Completes US$2.5 Billion Asia Private Credit Fundraise
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private creditfinancial
Private credit is a form of borrowing where companies or organizations obtain loans directly from private lenders rather than traditional banks or financial markets. It often involves customized financing arrangements that are not traded publicly, making it a way for businesses to access funding outside of standard channels. For investors, private credit offers the potential for higher returns, but typically comes with increased risk and less liquidity compared to more conventional investments.
unitranchefinancial
A unitranche loan is a single debt agreement that combines what would normally be separate senior and junior loans into one facility with a single interest rate and repayment schedule. For investors it simplifies the company's borrowing picture but changes the risk and return because lenders share one common claim on assets and receive a blended yield, which affects how quickly creditors are repaid in distress and the firm's flexibility to raise or restructure debt — like merging two traffic lanes into one road.
collateral-backed investmentsfinancial
Collateral-backed investments are loans, bonds, or other securities where repayment is tied to specific assets pledged as backup, like property, equipment, or receivables. For investors this matters because the pledged assets act like a safety net—if the borrower cannot pay, creditors can sell the collateral to recover money—reducing the risk of loss but sometimes also limiting potential returns compared with unsecured investments.
direct lendingfinancial
Direct lending is when investors or investment funds lend money straight to companies instead of those companies borrowing from traditional banks. It matters to investors because it can offer higher interest income than public bonds or bank deposits, much like lending money to a neighbor for a premium, but it also carries greater credit risk and lower liquidity since the loans are often private and harder to sell.
acquisition financingfinancial
Acquisition financing is the money a buyer uses to pay for another company, typically drawn from cash on hand, new loans, or by selling new shares. Think of it like choosing between a mortgage, a personal loan, or crowdfunding to buy a house; each choice affects monthly costs, ownership stakes and long-term risk. Investors watch these choices because they change a buyer’s debt load, interest costs, and potential share dilution, all of which influence future returns and company stability.
leveraged creditfinancial
Loans or bonds made to companies that already carry a lot of debt or have weaker financial profiles; these borrowers are considered "leveraged" because they rely heavily on borrowed money. Investors receive higher interest or yields to compensate for greater risk, but these instruments are more likely to suffer losses or fall in value if the borrower’s cash flow weakens, so they can add meaningful credit and market risk to a portfolio.
private marketsfinancial
Private markets are places where investors buy and sell ownership in companies, debt, or assets that are not listed on public stock exchanges — think direct stakes in a start-up, private company, real estate project, or loan. They matter to investors because these deals can offer higher potential returns and diversification but come with less transparency, limited ability to sell quickly, and more uncertainty, like owning a whole house versus trading shares of a real estate fund.
capital structurefinancial
Capital structure is the way a company finances its operations and growth by using different sources of money, such as borrowed funds (loans or bonds) and owner’s equity (investments from owners or shareholders). It’s like a recipe for baking a cake, where the balance of ingredients affects the final product's strength and taste; similarly, the mix of debt and equity influences a company's stability and risk. For investors, understanding a company's capital structure helps gauge how risky it might be to invest or lend money.
HONG KONG--(BUSINESS WIRE)--
KKR, a leading global investment firm, today announced the completion of a US$2.5 billion fundraise focused on committing capital to privately originated performing credit investments in Asia Pacific. The fundraise includes US$1.8 billion in KKR Asia Credit Opportunities Fund II (“ACOF II” or the “Fund”) and US$700 million raised from separately managed accounts focused on the same types of investment opportunities.
At close, the Fund is the largest pan-regional performing private credit fund in Asia Pacific. This closely follows KKR’s inaugural Asia Pacific-dedicated private credit fund, KKR Asia Credit Opportunities Fund, which closed at US$1.1 billion in 2022 as the largest inaugural pan-regional fund focused on performing credit. KKR’s Asia Credit platform has signed 10 investments through ACOF II representing US$1.9 billion in KKR commitments, including other pools of capital, and a total transaction volume of US$4.6 billion.
Diane Raposio, Partner and Head of Asia Credit & Markets at KKR, said “Asia is a key pillar of KKR’s global credit strategy. The close of ACOF II demonstrates the breadth and scale we have built across our Asia credit platform, spanning both private and liquid markets. We are seeing growing investor demand for allocation to credit in the region. Our pan-Asia approach and ability to leverage the broader KKR Asia platform uniquely positions us to continue sourcing and executing interesting opportunities across the region for our investors.”
KKR’s Asia Credit platform seeks to provide bespoke private credit solutions to companies and sponsors which harness the strength of KKR’s investment capabilities and its expertise as one of the largest credit managers globally. The Asia Credit team leverages KKR’s local and global resources to source, diligence, and execute investment opportunities to provide borrowers with customized financing and value creation potential while ensuring lender capital protections. Like its predecessor, ACOF II will pursue investments in performing privately originated credit and target opportunities across three primary investing themes, including senior and unitranche direct lending, capital solutions, and collateral-backed investments.
SJ Lim, Managing Director and Head of Asia Private Credit at KKR, said “Private credit remains a relatively nascent yet compelling opportunity across the region. We see strong demand for private credit as an important tool for sponsors or corporates seeking flexible financing solutions and bespoke, partnership-oriented capital to support growth and meet their diverse needs. Our performing credit strategy is based on the same long term structural themes such as rising consumption, urbanization and digitalization that have underpinned the growth of private markets in Asia.”
The Fund received strong support from a diverse group of new and existing investors, including insurance companies, public and corporate pension funds, sovereign wealth funds, family offices, banks, corporates, and asset managers.
In Asia Pacific, KKR has closed over 60 investments through its Asia Credit strategy since 2019, accounting for approximately US$8.3 billion invested by KKR and total transaction value of US$27.5 billion. This has included providing acquisition financing and bespoke capital solutions for companies and financial sponsors in the healthcare, education, real estate, logistics, and infrastructure sectors. KKR targets credit investments in Australia, Greater China, India, Japan, Korea, New Zealand, and Southeast Asia.
Over the past two decades KKR has built one of the largest credit investment platforms globally with the ability to invest across the capital structure and liquidity spectrum. These capabilities are paired with KKR’s approach to proprietary sourcing, capital preservation, and active portfolio management to seek out long-term capital appreciation and attractive risk-adjusted returns. Today, KKR manages approximately US$282 billion of credit assets globally, including approximately US$143 billion in leveraged credit, approximately US$131 billion in private credit, and approximately US$8 billion in strategic investments, as of September 30, 2025. KKR has a team of approximately 250 credit investment professionals across 12 offices globally.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
