KKR India NBFC raises $100m from US pension fund - report

According to LiveMint, the PE firm is also in talks with another global investor to raise $75-100 million.

The NBFC was started to originate, structure and provide debt financing to entrepreneurs. Debt financing has become important in India as funding from the IPO markets and banks is harder to come by. KKR has funded at least 30 companies so far, lending roughly $1.5 billion from its balance sheet.

Earlier this week KKR co-founder Henry Kravis told reporters that a lot of Indian entrepreneurs do not want to sell their shareholding in a company.

"Most of the companies in India are family-controlled and there is a holding company and shares in their different companies. They will finance against those shares as they want to make other investments or if they need some liquidity themselves," Kravis said.

Joseph Bae, KKR's head of Asia, added that in Asia there is a very nascent, underdeveloped high-yield bond market for companies seeking credit.

"When we think about credit opportunities we are not looking to compete with banks for senior loans. What we are really focused on is that next tier of credit, which is really unavailable today in terms of high-yield bonds, structured credit solutions, mezzanine financing," he explained.

KKR is said to be launching a $150 million real estate NBFC in collaboration with GIC Private to back residential projects, as well as targeting INR20 billion ($365 million) for a debt fund, India Alternative Credit Opportunities Fund I, that will invest in mezzanine and structured credit instruments.

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• Topics
• South Asia
• Financials
• Financing
• India
• KKR
• Financial Services
• Teachers Retirement System of Texas
• Structured finance