Global investment firm KKR has raised $2.5 billion for its second fund focused on privately originated performing credit investments in the Asia Pacific.
The fundraise comprises $1.8 billion for KKR Asia Credit Opportunities Fund II (ACOF II) and a further $700 million from separately managed accounts focused on the same types of investment opportunities, KKR said in a statement on Thursday (Jan. 15). Following the final close, ACOF II is the largest pan-regional performing private credit fund in the Asia Pacific.
KKR’s inaugural Asia Pacific-dedicated private credit fund, KKR Asia Credit Opportunities Fund, had closed at $1.1 billion in 2022, making it the largest first-time pan-regional fund focused on performing credit.
KKR’s Asia Credit platform has so far signed 10 investments through ACOF II, representing $1.9 billion of KKR commitments, including capital from other pools. These investments account for a total transaction volume of $4.6 billion.
Like its predecessor, ACOF II will focus on performing privately originated credit investments and target opportunities across three primary themes: senior and unitranche direct lending, capital solutions, and collateral-backed investments.
“Asia is a key pillar of KKR’s global credit strategy. The close of ACOF II demonstrates the breadth and scale we have built across our Asia credit platform, spanning both private and liquid markets. We are seeing growing investor demand for allocation to credit in the region. Our pan-Asia approach and ability to leverage the broader KKR Asia platform uniquely position us to continue sourcing and executing interesting opportunities across the region for our investors,” said Diane Raposio, Partner and Head of Asia Credit & Markets KKR.
In fact, KKR stated in its global outlook report towards the end of last year that it wants to “own more Asia”, citing ongoing corporate reforms and the region’s secular consumption expansion as key drivers.
“The good news is that investors, especially on the private side, are now generally underweight this region, including equities, infrastructure, and credit,” stated Henry McVey, Head of Global Macro & Asset Allocation, CIO of KKR Balance Sheet in the report.
ACOF II, according to the official statement, received support from a diverse group of new and existing investors, including insurance companies, public and corporate pension funds, sovereign wealth funds, family offices, banks, corporates, and asset managers.
In the Asia Pacific, KKR has closed over 60 investments through its Asia Credit strategy since 2019, accounting for approximately $8.3 billion invested by KKR and a total transaction value of $27.5 billion. This has included providing acquisition financing and bespoke capital solutions for companies and financial sponsors in the healthcare, education, real estate, logistics, and infrastructure sectors. KKR targets credit investments in Australia, Greater China, India, Japan, Korea, New Zealand, and Southeast Asia.
KKR manages approximately $282 billion of credit assets globally, including approximately $143 billion in leveraged credit, approximately $131 billion in private credit, and approximately $8 billion in strategic investments, as of September 30, 2025. KKR has a team of approximately 250 credit investment professionals across 12 offices globally.
