KKR eyes Asia opportunities as valuations fall

"Some of the deals that we've been doing in Asia have really been as a result of this meaningful downdraft. We mentioned the higher investment we made in China, as an example, is a good example of that. So the volatility creates opportunities for us, which is great," Scott Nuttall, head of KKR's global capital and asset management group, told analysts during the company's fourth quarter earnings call.

He added that KKR has also been waiting for volatility to make valuations more attractive in Brazil.

The PE firm, which reached a final close of $6 billion on its second pan-Asian fund last year, was particularly active in the second half of 2013, announcing six of the nine private equity investments it made during the course of the year, according to AVCJ Research.

KKR is currently investing its China growth fund as well as the second Asia fund. The final transaction from KKR Asian Fund I was in the first half of 2013.

Second half deals included the purchase of a majority stake in Panasonic Healthcare for $1.7 billion and sizeable equity checks for minority positions in China's Qingdao Haier, Malaysia-based Weststar Aviation Services and India's Gland Pharma.

Nuttall noted that the US and Asia accounted for 85% of the $2 billion in fund equity invested in the fourth quarter of 2013. Asia is also responsible for $1 billion of the $2.5 billion of equity capital committed to transactions that have yet to close. KKR's total private markets activity - for closed and announced transactions - amounted to more than $8 billion in 2013, compared to $3 billion in 2012.

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• Topics
• Buyout
• Greater China
• Buyouts
• Expansion
• Asia
• buyout
• Growth capital
• KKR