HONG KONG-Kohlberg Kravis Roberts, the U.S. private equity giant, said Wednesday that it had closed a $6 billion Asia-Pacific fund, the biggest such fund dedicated to the region to date.
K.K.R. met its fund-raising goal for its second major Asia-wide fund even as global buyout firms have faced challenges from slumping markets and emerging local competitors in China, a major focus of private equity investment in the region. But deal activity has been rising in other markets, like Southeast Asia, where investors see long-term potential in the growth of consumer demand.
Globally, private equity companies raised $122 billion in new funds in the second quarter of the year, the most since the financial crisis, according to data from Preqin, a research firm. In Asia, the biggest recent private equity fund raising was that of RRJ Capital, based in Hong Kong, which had closed a $3.5 billion Asia fund in the first quarter of the year.
K.K.R. opened its first Asia office in Hong Kong in 2005, raising a $4 billion regional fund in 2007 and a $1 billion China fund in 2010. The company opened a Singapore office last year to focus on Southeast Asia deals, and today employs more than 100 executives in seven offices across Asia.
To date, K.K.R. has invested more than $5.5 billion in 30 companies around Asia. Companies engaged in consumer products account for 38 percent of its current Asia investment portfolio by value, while technology firms account for 14 percent.
The new Asia fund will continue to target rising domestic demand in the region, focusing on companies in the consumer products, retail, health care, education and industrial sectors, K.K.R. said in a statement.
