KKR closes $2.5 billion Asia-Pacific credit fund, deploys more than half across 10 deals

MUMBAI: KKR has closed its second Asia-Pacific credit fund with a capital of $2.5 billion by disbursing more than half of 10 investments, the global investment firm said on Thursday.

Providing tailored credit solutions to companies and sponsors, the fund will continue to invest in the realization of credit opportunities across three main themes: senior and unit segment direct lending, capital solutions and collateral-backed investments.

Of this corpus, $1.8 billion consists of KKR’s Asian Credit Opportunities Fund (ACOF II) and $700 million consists of separately managed accounts focused on similar investments. The 10 transactions executed by the credit platform represent approximately $1.9 billion of distributed capital, with a total transaction value of $4.6 billion.

MUMBAI: KKR has closed its second Asia-Pacific credit fund with a capital of $2.5 billion by disbursing more than half of 10 investments, the global investment firm said on Thursday.

Providing tailored credit solutions to companies and sponsors, the fund will continue to invest in the realization of credit opportunities across three main themes: senior and unit segment direct lending, capital solutions and collateral-backed investments.

Of this corpus, $1.8 billion consists of KKR’s Asian Credit Opportunities Fund (ACOF II) and $700 million consists of separately managed accounts focused on similar investments. The 10 transactions executed by the credit platform represent approximately $1.9 billion in capital, with a total transaction value of $4.6 billion.

“Asia is a key pillar of KKR’s global credit strategy. The closing of ACOF II demonstrates the breadth and scale we have built across our Asia credit platform, spanning both private and liquid markets. We see growing investor demand for credit allocation in the region,” said Diane Raposio, partner and head of Asia Credit and Markets at KKR. “Our pan-Asian approach and ability to leverage the broader KKR Asia platform puts us in a unique position to continue to source and execute interesting opportunities across the region for our investors.”

The funding comes nearly four years after KKR raised its first Asia-Pacific-specific private loan and credit opportunities fund, which closed at $1.1 billion. According to the statement, ACOF II has received commitments from a wide range of investors, including insurance companies, public and corporate pension funds, sovereign wealth funds, family offices, banks, corporations and asset managers.

The private loan market in India has taken off in the last 12-18 months as domestic and global firms entered the market seeking faster, more flexible capital than traditional lenders can provide. Domestic players such as Motilal Oswal Alternates, ASK Group, True North, Edelweiss and Multiples Alternate Asset Management have joined global firms such as KKR and Blackstone to capitalize on the opportunity.

While the global private credit market is estimated to be over $3 trillion, according to EY, PwC estimates that the Indian market will have a deal size of around $10 billion in 2024, with assets under management at around $25 billion.

KKR has made over 60 loan investments in the Asia-Pacific region in the last seven years, distributing approximately $8.3 billion and creating a total transaction volume of $27.5 billion. Its investments span healthcare, education, real estate, logistics and infrastructure, targeting opportunities in Australia, Greater China, India, Japan, Korea, New Zealand and Southeast Asia.

“Private credit remains a relatively nascent but compelling opportunity across the region. We see the strong demand for private credit as an important tool for sponsors or companies seeking flexible financing solutions and private, partnership-focused capital to support growth and meet their diverse needs,” said SJ Lim, KKR Managing Director and Head of Private Credit for Asia.

Lim added that the credit strategy is based on themes such as increasing consumption, urbanization and digitalization.

As of September 30, 2025, KKR manages approximately $282 billion in credit assets worldwide, including $143 billion in leveraged loans, $131 billion in private loans and $8 billion in strategic investments. The firm’s credit team consists of approximately 250 investment professionals in 12 offices worldwide.