ADIA buys stake in KKR's India NBFC
The Abu Dhabi Investment Authority (ADIA) has invested in KKR India Financial Services (KIFS), an Indian non-banking finance company (NBFC) backed by KKR.
ADIA has committed an undisclosed amount for a significant minority stake in KIFS, according to a statement. KIFS will use the new capital to scale up its platform and develop new financial services products for the Indian market.
Founded in 2009, KIFS provides structured debt solutions to corporations and mid-sized enterprises in India seeking long-term capital. As a locally-incorporated vehicle, it is a source of rupee-denominated funding to companies that struggle to obtain capital from traditional banks and do not want to give up equity to investors.
Since its launch, KIFS claims to have extended about $4 billion in financing. The NBFC seeks to leverage KKR’s investment experience and industry expertise to originate and execute transactions across a range of sectors.
“India is one of the world's fastest growing and most dynamic markets, and Indian businesses are increasingly seeking alternative credit solutions,” said Hamad Shahwan Al-Dhaheri, executive director for private equity at ADIA. “KIFS has played an integral role in the development of this important form of financing in India and, through our investment in the company, we look forward to supporting the continued evolution of the market.”
KIFS is one of several NBFCs in India backed by KKR. The firm is a sponsor, alongside Singapore’s GIC Private and The Townsend Group, of a real estate-focused NBFC, and has also invested in other institutions such as agriculture-focused Magma Fincorp.
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