KKR, Mubadala form $1b Asia credit partnership
KKR and Mubadala Investment – a sovereign investor controlled by the government of Abu Dhabi – have established a partnership through which they will co-invest in performing credit opportunities across Asia Pacific.
The goal is to put at least USD 1bn to work, with Mubadala investing alongside KKR's existing pools of capital, including the KKR Asia Credit Opportunities Fund, which closed on USD 1.1bn in May. The fund targets performing privately originated credit, focusing on senior and unitranche corporate lending, subordinated corporate lending, and asset-based finance investments.
KKR noted in a statement that there is significant demand for private credit solutions in Asia because a limited supply of capital from banks and non-bank lenders means many companies, sponsors, and entrepreneurs struggling to access flexible financing.
"Alongside Mubadala, KKR will have the additional resources to materially increase the size of our investments, pursue more opportunities across Asia, and extend innovative capital solutions to meet the rising demand of borrowers," said Brian Dillard, a partner and head of Asia Pacific credit at KKR.
The private equity firm has deployed nearly USD 3bn in Asia credit opportunities since 2019, operating in every major market in the region apart from Japan and Indonesia. Borrowers came from the environmental services, real estate, education, infrastructure, and healthcare sectors.
KKR established its global credit platform in 2004 and there are now approximately USD 178bn in assets under management globally.
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