Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Private Equity Pioneer KKR Raises $9.3B for Third Asian Fund

2017/06/03 by Greg Isaacson Leave a Comment

MIng Lu KKR

Ming Lu, KKR’s Head of Asia Private Equity, sees ample opportunities in Asia

Leveraged-buyout pioneer KKR has closed on its third pan-Asian fund, after raising US$9.3 billion for private equity investments across the region, the New York-based global investment firm announced Friday. The new vehicle, Asian Fund III, is the largest ever private equity fund dedicated to investment in Asia Pacific, says KKR, citing data provider Preqin.

The closing tops KKR’s initial target of $7 billion for the pan-Asian, multi-sector investment vehicle, as investors increasingly turn to alternative investments such as private equity in search of yield.

Asian Fund III boosts the assets under management of KKR’s private equity business to approximately $68 billion worldwide, and is the largest Asia Pacific-targetted private equity fund ever raised, surpassing KKR’s previous fund of $6 billion.

Following Up on Fund II’s 20.6% Return

With the launch of the new fund, KKR hopes to build on the success of its previous Asia vehicles. According to the firm’s most recent quarterly report, its first Asian fund, commenced in 2007, generated an annualized net rate of return of 13.7 percent. Asian Fund II, commenced in 2013, brought a 20.6 percent net return.

“We see a diverse set of opportunities across Asia Pacific stemming from rising consumption and urbanization trends in key markets as well as larger carve-out and cross-border transactions in countries such as Japan,” commented Ming Lu, KKR Member and Head of Asia Private Equity, in the company’s announcement.

Although the company did not specify the types of assets that would be targeted by the fund, KKR’s track record in Asia suggests that property investments could be in the works. Last November, KKR teamed up with Chinese developer Sino-Ocean for a $191 million investment in mainland shopping malls via a stake in retail outlet mall developer and operator Beijing Capital Juda, a subsidiary of Beijing Capital Land.

The launch of the new fund follows a restructuring of the company’s China management team last summer, in which KKR hired Rob Yang from Blackstone to lead its real estate business in Greater China. The company’s China Growth Fund has lagged behind its pan-Asia vehicles, returning 7.8 percent.

KKR Joins Rush to India

Runwal Bliss KKR

In March KKR invested in the Runwal Bliss project in Mumbai

In addition to its China retail investment, KKR is also bullish on India, having invested about $9 billion in the country since 2009. In January the company acquired a $46 million residential project in Mumbai, and in March it reportedly committed about $155.2 million for three real estate projects in the country.

KKR was recently edged out by Singapore’s Perennial Real Estate in the bidding for S$1.8 billion ($1.3 billion) Singapore property group United Engineers Ltd this past February.

Since opening its first office in Asia Pacific in 2006, KKR — which under its original name of Kohlberg Kravis Roberts pioneered leveraged buyouts in the US in the 1980s, has grown to be one of the biggest private equity investors in the region. The New York Stock Exchange-listed firm  invested over US$12 billion in Pan-Asia private equity investments in approximately 55 companies across 10 countries.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Finance Tagged With: daily-sp, KKR, Private equity

https://player.vimeo.com/video/644203510?h=bc8945e2fd

Leave a Reply

Your email address will not be published. Required fields are marked *

Asia Proptech Report 2022 (Special Report)

Get Mingtiandi Delivered

REIT forum 2022 Web banner

MTD TV

Allianz, SC Capital, BW and JLL Talk Asia’s New Logistics Real Estate Reality: MTD TV
ESR, JLL, BW and Logos See Logistics Pivot to Developing Markets: MTD TV

More MTD TV Videos>>

People in the News

Lu Yi Shimao
Asia Real Estate People in the News 2022-06-27
Wu Jianxin Kaisa
Asia Real Estate People in the News 2022-06-20
Graham Mackie Tishman
Tishman Speyer Appoints Graham Mackie to Lead APAC Push Beyond China and India
Antoine Mesnage
AXA IM Alts Appoints Antoine Mesnage as Head of Australia, Promotes 2 Other Execs

More Industry Professionals>>

People in the News

Asia Real Estate People in the News 2022-06-27

Lu Yi Shimao

A senior appointment by one of China’s crew of defaulting privately-controlled developers leads this week’s roundup of … Read More>>

Asia Real Estate People in the News 2022-06-20

Wu Jianxin Kaisa

Top level executive changes at a pair of major mainland real estate companies lead this week’s round-up of personnel … Read More>>

Tishman Speyer Appoints Graham Mackie to Lead APAC Push Beyond China and India

Graham Mackie Tishman

US developer Tishman Speyer has hired industry veteran Graham Mackie as a managing director to lead the firm’s Asia … Read More>>

AXA IM Alts Appoints Antoine Mesnage as Head of Australia, Promotes 2 Other Execs

Antoine Mesnage

AXA IM Alts is shaking up its leadership team Down Under with the appointment of Antoine Mesnage as the French firm’s … Read More>>

More Industry Professionals>>

Latest Stories

Lin Ho Man
Evergrande to ‘Vigorously’ Fight Winding-Up Petition Filed by Disgruntled Investor
Sunac Sun Hongbin
Sunac Meets Investors to Seek Second Extension on $600M in Domestic Bonds
Actis to Invest $700M in India Life Science Assets and More Asia Real Estate Headlines

Sponsored Features

Should Proptech Give Us Sleepless Nights?
Hong Kong’s Evolving Commercial Real Estate Landscape
Opportunities in the Greater Bay Area

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.