Minnesota SBI backs KKR's Asia fund

The commitment has already received the green light from the pension system's investment advisory council, and it will be put before full committee next week.

KKR launched the fund towards the end of last year, setting a $12.5 billion target. If this is achieved, it would be the largest-ever Asia-focused, US dollar-denominated fundraise. The firm closed its third pan-regional vehicle in 2017 with commitments of $9.3 billion. A dedicated Asia growth-stage technology fund is also in the works.

Minnesota SBI had total assets of $101.1 billion as of June 2019. Of this, $5.6 billion – or 8% – was invested in private equity. The pension system had a further $2.9 billion in core and non-core real assets, $1.1 billion in distressed and opportunistic strategies, and $601 million in private credit.

Existing Asia-focused GP relationships include a $100 million commitment to Asia Alternatives' fifth private equity fund-of-funds, which closed at $1.8 billion in 2017. Minnesota SBI is also a longstanding investor in Warburg Pincus' global flagship funds, which led it to support the private equity firm's first China sidecar vehicle and the successor that targets Southeast Asia as well.

Prior to 2017, the pension system had no direct exposure to Asia-focused private equity funds.

For more insight on LPs' strategic decisions, visit AVCJ's sister publication Inframation Documents.

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• Topics
• Fundraising
• Buyout
• LPs
• Asia
• KKR