KKR raises S$7.6b in region’s largest fund

Published: 6:23 PM, July 10, 2013
Updated: 10:40 AM, July 11, 2013

HONG KONG — KKR & Co raised US$6 billion (S$7.6 billion) for its third Asia private equity fund, equipping the firm with the largest such fund in the region at a time when market turmoil is creating both opportunities and challenges for foreign investors.

KKR said it raised US$1.5 billion, or 26 per cent of the fund, from Asian investors. The firm also raised US$908 million from new investors who did not participate in KKR’s first Asia fund.

The Asian II Fund follows the US$4 billion Asia fund it raised in 2007 and a US$1 billion China Growth Fund in 2010, KKR said. The New York firm has invested more than US$5 billion in Asia since 2005.

KKR’s US$6 billion fundraising effort comes as investors eye falling valuations inside the region’s slowing economies. But volatility and tough foreign investor barriers have also presented plenty of challenges to the private equity industry in Asia.

KKR has invested in tech, consumer and financial businesses across China, Singapore and South Korea since it started its first Asia office in Hong Kong in 2007. REUTERS