KKR reaches halfway point on $6b Asia fund

The final target is around $6 billion, 50% larger than the firm's first Asian fund, which was raised in 2007. Like many of its counterparts globally, the private equity firm is said to be offering investors the choice of a lower management fee or a greater share of commission levied on portfolio companies.

Washington State Investment Board has already committed $400 million to the vehicle, while Oregon Public Employees Retirement Fund has confirmed it will invest $200 million, with Oregon's Common School Fund putting in another $25 million. Last week Taiwan insurer Cathay Financial said it had committed $30 million.

Several other pan-regional funds are already in the market or planning to launch. It was reported in April that TPG Capital is nearing a first close of $1.5 billion on its latest vehicle, which has a full target of at least $4 billion. Government of Singapore Investment Corp. (GIC) is expected to be the largest investor.

The Carlyle Group is said to have made initial approaches to investors regarding its $3.5 billion fourth Asia buyout fund, while Bain Capital launched its second Asia fund last June, with a target higher than the $1 billion raised for its previous fund. PAG last year reached a first close of $1.7 billion on its $2.7 billion debut vehicle.

Of those yet to launch officially, Morgan Stanley Private Equity Asia is expected to seek about $1.5 billion, the same as for its previous fund. Affinity Equity Partners is only in the initial stages of preparation, but raised $2.8 billion for its third fund in 2007.

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• Topics
• Fundraising
• Buyout
• KKR
• Fundraising
• Asia
• TPG Capital
• The Carlyle Group
• Bain Capital Asia
• PAG
• Morgan Stanley Private Equity Asia
• Affinity Equity Partners