KKR and Mubadala Investment Company have signed a strategic partnership to invest at least US$1 billion across performing private credit opportunities in the Asia-Pacific region (APAC).
In what has been described as a significant milestone for both organisations, the partnership is set to strengthen Mubadala’s exposure in the growing APAC credit market while also enabling KKR to significantly scale its APAC credit platform.
“We are excited to strengthen our deep and long-standing relationship with Mubadala through this strategic partnership,” said KKR partner & head of Asia-Pacific credit, Brian Dillard.
“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.”
In a joint statement, the two firms noted that many companies, sponsors and entrepreneurs in APAC were facing challenges accessing flexible financing due to the limited supply of capital from banks and non-bank lenders amid strong growth and high demand for funding solutions.
Through their partnership, Mubadala and KKR said that they seek to address this shortage of flexible capital while supporting APAC businesses to achieve their long-term growth ambitions.
KKR has deployed almost US$3 billion in credit capital in the region since 2019. The APAC credit business forms part of KKR’s approximately US$178 billion global credit platform.
Mubadala, which manages a US$284 billion portfolio with interests in multiple sectors and asset classes, indicated that it will deploy its capital alongside KKR’s existing pools of capital, including the recently raised US$1.1 billion KKR Asia Credit Opportunities Fund.
“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.
“We are very pleased to collaborate with KKR, an experienced and high-calibre partner, and we look forward to leveraging their deep experience and capabilities in Asia Pacific to pursue credit opportunities and deliver value to our stakeholders.”
