KKR seeks $6b for second Asia buyout fund

A first close is expected by the middle of next year, Bloomberg reported, citing a person with direct knowledge of the situation. KKR raised $4 billion for its debut Asia vehicle, which closed in July 2006 after about 18 months in the market. LPs included Washington State Investment Board, Canada Pension Plan Investment Board, Asia Alternatives and HarbourVest Partners, according to AVCJ Research.

Since then, the firm has set up the KKR China Growth Fund, which closed in February at $1 billion, and KKR India Fund, which launched in January and is still fundraising.

KKR's new vehicle would be the largest Asia-focused fund since the onset of the global financial crisis, surpassing the $4-5 billion TPG Capital is looking to raise for its latest regional fund. TPG's fund, which is scheduled to launch in mid-October, comes as its predecessor - the $4.5 billion TPG Capital Partners V fund - is now 75% deployed.

Bain Capital launched its second Asia fund in June and aims to raise more than the $1 billion it raised for Bain Capital Asia Fund, which closed in February 2007. The target is reportedly in the region of $2 billion. The new fund will follow a similar strategy to its predecessor, focusing principally on Japan but looking to source some deals in China and India.

The impending fundraise reflects the strong demand among global investors for Asia-focused funds. According to Preqin, the region accounted for 12% of global fundraising in 2003; this had risen to 21% for January-August 2011.

The largest funds raised in the last two years are Carlyle Asia Partners III, which closed at $2.55 billion in April 2010, and Baring Private Equity Fund V. The latter vehicle took just six months to secure $2.46 billion in commitments, against an original target of $1.75 billion, closing in January 2011. PAG Asia I reached a first close of $1.7 billion in July and is targeting $2.5 billion in total.

Henry Kravis, co-founder, co-chairman and co-CEO of KKR, will be a headline speaker at the 24th Annual AVCJ Forum 2011, taking place on the 7 - 10 November 2011 at the Grand Hyatt Hong Kong. He will be joined by global private equity heavyweights including James Coulter, of TPG Capital; Howard Marks, of Oaktree Capital; David Rubenstein, of The Carlyle Group; Jonathan Nelson, of Providence Equity Partners; and John Connaughton, of Bain Capital. For more information on the 2011 AVCJ Forum visit www.avcjforum.com.

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• Topics
• Fundraising
• Buyout
• North America
• Fundraising
• Asia
• buyout
• KKR
• TPG Capital
• Bain Capital Asia