By Kane Wu (Reuters) -KKR is seeking $15 billion of investment in its fifth Asia private equity fund, three people with knowledge of the matter said of what would be among the region’s biggest such fundraisings. The global private equity firm started marketing the fund to investors this week, said the sources, who all declined […]
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Exclusive-KKR aims to raise $15 billion for latest Asia private equity fund, sources say
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By Kane Wu
(Reuters) -KKR is seeking $15 billion of investment in its fifth Asia private equity fund, three people with knowledge of the matter said of what would be among the region’s biggest such fundraisings.
The global private equity firm started marketing the fund to investors this week, said the sources, who all declined to be named because the information was confidential.
The final size of the fund could exceed the target based on market response, they added. KKR will continue to focus on sectors including consumer, life sciences, financial services, healthcare and industrials, said one of the sources.
New York-headquartered KKR declined to comment.
ACTIVITY PICKS UP
Private equity activity has picked up in Asia as warming capital markets allow exits via initial public offerings while assets in markets such as Japan and India have become more attractive to investors.
Total capital returned to investors from KKR’s Asia private equity investments has exceeded $7.3 billion this year, Reuters reported this month.
Half of the private equity capital that would be returned to investors this year would come from Asia, the global investment firm’s co-CEO Joe Bae said at a Hong Kong summit this month.
KKR raised $15 billion in its fourth Asia buyout fund in 2021, the largest such fund to date.
Its third and fourth Asia funds achieved a gross internal rate of return of more than 20%, KKR said on a recent earnings call. The fourth fund returned 40% of its capital by the end of September.
REAPING RETURNS
Most recently, KKR sold a 19.9% stake in Japanese transport and logistics company LOGISTEED to Japan Post for about 142 billion yen ($900.6 million), public filings showed.
It has also reaped returns from the sale of Japanese supermarket chain Seiyu for $2.55 billion and a controlling stake in India’s JB Chemicals and Pharmaceuticals for about $1.4 billion.
KKR will balance the fifth fund’s investment portfolio across markets including Japan, India, China, South Korea and Southeast Asia, one of the sources said.
The firm had about $80 billion of assets under management in Asia at the end of September, the earnings call disclosed.
SIZEABLE FUNDRAISING
KKR’s latest buyout fundraising follows similar moves from its global peers.
Sweden’s EQT has secured $11.4 billion in commitments for its new Asia-focused buyout fund, with fundraising expected to end before year-end and hit a hard cap of $14.5 billion in 2026, it said in July.
Bain Capital is targeting at least $7 billion in its next Asia buyout fund, separate sources with knowledge of the matter have said, while Blackstone has been in market to raise at least $10 billion for its third Asia private equity fund.
Bain Capital declined to comment while Blackstone did not respond immediately to a request for comment.
($1 = 157.6700 yen)
(Reporting by Kane WuAdditional reporting by Yantoultra Ngui in SingaporeEditing by Alexander Smith, Kirsten Donovan and David Goodman)