KKR’s Asia fund ‘practically closed’ – Kravis
KKR’s second Asia fund is “practically closed” having exceeded its $6 billion cap, according to Henry Kravis, co-chairman of the private equity firm. This confirms earlier reports that the fund – the largest vehicle ever raised in the region, topping the $4.25 billion raised by TPG Capital for its fifth Asia fund in 2007 – was oversubscribed.
"We raised it faster because people want to be in Asia," Kravis told an industry conference in Europe, Bloomberg reported. KKR executives have previously blamed the popularity of the fund for the slow progress of the firm's latest North America-focused vehicle, with significant overlap between the two investor bases.
According to KKR's 2012 annual report, commitments to KKR Asian Fund II stood at $4 billion at year-end, including the GP contribution. The private equity firm announced a first close on the vehicle last June, with third-party investors pledging $2.76 billion and general partners putting in a further $250 million.
Participating LPs include Washington State Investment Board, Oregon Public Employees Retirement Fund, Oregon's Common School Fund, and Taiwan insurer Cathay Financial.
KKR raised $4 billion for its debut Asia vehicle in 2006. The fund was nearly 80% invested at the end of 2012 and had delivered a net IRR of 14% and a multiple of 1.8x.
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