Global Investment firm KKR and Abu Dhabi’s sovereign fund Mubadala Investment Company on Monday said they have agreed to co-invest $1 billion in private credit opportunities in the Asia Pacific region.
In line with the partnership, Mubadala will deploy its capital alongside KKR’s existing pools of capitals, including its $1.1 billion-investment vehicle KKR Asia Credit Opportunities Fund.
KKR closed this credit fund, focused on the corporate lending in the Asia market, in May.
“Expanding into the Asia Pacific region is a core pillar of our strategy as this market presents unique credit investment opportunities, driven by its rapid growth and high demand for non-bank capital,” said Omar Eraiqaat, Co-Head of Credit Investments at Mubadala, in a joint statement.
The partnership aims to leverage the growing opportunities in the region, increasing Mubadala’s exposure and helping KKR scale its credit platform.
“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. We look forward to playing an even larger role in helping to meet Asian businesses’ growing financing needs,” Brian Dillard, Partner & Head of Asia Pacific Credit at KKR, said.
KKR has deployed nearly $3 billion in credit capital in Asia Pacific since 2019. These include providing acquisition financing and capital solutions for companies and financial sponsors in the environmental services, real estate, education, infrastructure, and healthcare sectors. The investment firm has a $178 billion global credit platform.
In India, KKR has been actively closing deals. Last week, it said it will jointly invest $500 million along with Brookfield and ADIA and pick up minority stakes in group companies of Mumbai and London-based agriculture solutions provider UPL Ltd including its Indian subsidiary Advanta Enterprises Ltd. Prior to that, it led a $450 million-investment in Hero Future Energies, the renewable energy arm of the Hero Group.
Earlier this year, it signed a deal with home decor startup Livspace and a minority stake in Shriram General Insurance.
Mubadala manages a $284 billion portfolio that spans six continents with interests in multiple sectors and asset classes.