Private equity major KKR said it has completed an additional investment in Chinese fungal biotechnology solutions developer Sylvan in a round that included new investors and follow-on investments.
In a statement, KKR said existing backer Novo Holdings increased its stake but KKR is still the majority investor. Financial details of the add-on investments were not disclosed.
The KKR-led investment included commitments from global investors, KKR said, naming TPG NewQuest as lead investor in a GP-led transaction alongside KKR to support Sylvan. Other participants included Ping’An Capital, China Post Insurance, Schroders Capital, and Tsao Pao Chee.
Founded in 1932, China-based Sylvan is one of the world’s largest mushroom spawn and fungal biotechnology companies. It seeks to develop sustainable solutions across food, health, agriculture, and materials.
The company operates multiple production facilities globally and serves customers across 65 countries, KKR said.
From spawning to cultivation, the modern mushroom sector offers significant sustainability benefits and circular economy value to planetary health.
It requires minimal land and water compared to traditional agriculture and utilises agricultural waste as raw materials to produce high-quality proteins.
The additional capital is expected to help Sylvan scale output to meet demand, invest in product development that moves beyond traditional spawn into higher-value fungal applications, and broaden its commercial footprint in Asia, where industrial mushroom cultivation and bio-based products are expanding.
“This investment allows us to accelerate our ambition to become a global leader in fungal biotechnology solutions across strategies and regions,” said Sylvan CEO Jacki Qi.
KKR said it made the investment through its international and domestic funds, including its first renminbi-denominated fund, which it said was established to facilitate investment by local investors.
Chris Sun, partner and head of China private equity at KKR, said the company had seen sustained growth under its strategic partnership with Sylvan, including expansion, progress in R&D, and strategic acquisitions.
The additional investment comes as KKR 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. Following the final close, ACOF II is the largest pan-regional performing private credit fund in the Asia Pacific.
