KKR says it has no plans for India credit fund
KKR has talked down reports that it is preparing to raise an India-focused debt fund. While interested in pursuing India credit opportunities, the private equity firm currently has no plans to launch a specific vehicle in this space.
According to Reuters, KKR is in early-stage negotiations about raising a fund of $750 million to $1 billion that would offer debt products to Indian corporations, taking advantage of interest rates currently at a four-year high.
A spokesperson for the private equity firm told AVCJ that talk of a $1 billion fund was pure market speculation. "KKR is always exploring opportunities in markets, including India," the spokesperson said. "However, KKR has no plans at present to raise a credit fund in India Discussions on new funds, timing and target amounts are premature."
The private equity firm already offers credit solutions via KKR India Financial Services, its non-bank financial company (NBFC), but this uses capital from KKR's own balance sheet rather than through a fund structure with LPs. The spokesperson said that debt products would continue to delivered in this way.
NBFCs have become popular among PE investors because they are a means of offering local currency debt financing, which might be more palatable to entrepreneurs than selling equity. At the same time, they allow PE firms to form lending relationships with borrowers that could lead to future equity investment opportunities.
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