KKR seeks investors to expand India NBFC

The NBFC was launched in 2009 and has lent roughly INR80 billion ($1.3 billion) from KKR's balance sheet to 30 companies. According to LiveMint, the business is doubling year-on-year and KKR plans to scale it up further.

"We want to bring in investors with a long-term focus and have confidence in lending business," said Sanjay Nayar, CEO of KKR India. He added that the NBFC will continue to be a significant part of KKR's business as almost every sector in India is under-penetrated and requires strategic long-term capital solutions.

In addition to the current structured financing option, the firm's new India debt fund is also reported to be ready to make investments as it nears a first close of around INR10 billion. This full target is INR20 billion.

"Our strategy is to be a multi-asset solutions provider as mezzanine financing helps companies that are still in the growth phase, and the promoter does not need to dilute stake or raise expensive equity," Nayar said.

The NBFC has provided capital to the Max India Group, a life insurance and healthcare conglomerate with INR85.6 billion turnover in 2011-2012. Other borrowers include Avantha Power and Infrastructure and the JSW Group.

In March this year KKR was also reported to be launching a $150 million real estate NBFC in collaboration with GIC Private to back residential projects.

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• Topics
• South Asia
• Financials
• KKR
• NBFCs
• India
• Financial Services