KKR to establish investment team in Singapore
KKR will open an office in Singapore as a base for its investment activities across Southeast Asia. AVCJ understands that an announcement is forthcoming, with about eight investment professionals working out of the new office, although Ming Lu, the firm’s head of Southeast Asia, will continue to operate from Hong Kong.
According to Reuters, KKR has earmarked about $1 billion from its second Asia fund - currently being raised, and expected to be worth up to $6 billion - for deals in the region. Among those said to be deployed to Singapore are Ridha Wirakusumah, former CEO of Bank Internasional Indonesia, Kabir Mathur and David Tan.
The anticipated move comes as global buyout firms place an increased emphasis on Southeast Asia and Indonesia in particular. CVC Capital Partners and TPG Capital both have relatively large teams on the ground, the latter through its partnership with local GP Northstar Pacific Partners, and have managed to source deals.
Those that have yet to establish a presence in Indonesia find it more difficult. Earlier this year The Carlyle Group lost Anand Balasubrahmanyan, its senior managing director for Southeast Asia, after failing to land a deal in the country despite four years spent trying. Carlyle is not the only private equity firm to struggle in Indonesia. Affinity Equity Partners, for example, opened an office in Jakarta in 2009 but has yet to make an investment.
Demand for private equity executives who come from Indonesia or have considerable operational experience in the country is very high.
KKR has yet to complete any deals in Indonesia but its activities last year indicate the breadth of opportunities in the region. In 2011, the firm was responsible for Vietnam's largest ever private equity investment, picking up 10% of Masan Consumer Corp. for $159 million.
In addition to CVC and TPG, The Blackstone Group has an office in Singapore while General Atlantic established a presence in the city-state in January.
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