Private equity giant KKR & Co has opened its third China office in Shanghai further expanding its presence in Asia at a time when it is deploying its recently closed blockbuster $9.3 billion Asia-focused vehicle Asia Fund III, the largest private equity fund dedicated to the region.
KKR’s presence in Shanghai further deepens its commitment to the Chinese market and enhances the Firm’s ability to provide companies with value-added capabilities beyond capital investment alone, KKR said in an announcement on Thursday.
Including the new Shanghai office, KKR now has eight offices in Asia Pacific including in Beijing and Hong Kong
The firm has built its investment platform in the Asia-Pacific with a focus on developing strong country, industry and sector expertise. It closed its latest regional fund in May this year. Further, KKR’s previous Asia-focused fund Asia Fund II had set a regional record when it had raised $6 billion in 2013.
In fact, Fund II clocked an internal rate of return (IRR) of 26.4 per cent through December 2015, according to data from the California Public Employees’ Retirement System (CalPERS) which had invested in Asia Fund II.
The firm has deployed more than $3 billion in companies and entrepreneurs in Greater China since 2007, completing 26 investments in asset classes ranging from private equity to real estate. It has invested in areas such as consumer products and services, environmental sciences, education, financial services, health care and technology.
KKR sees further opportunities to leverage its global footprint, capital market and operational resources, and industry expertise to support Chinese companies pursuing regional and global expansion through cross-border deals.
“Our objective is to be the partner of choice to leading companies looking to enter a new phase of growth and expansion. The addition of a Shanghai office — which complements our existing offices in Beijing and Hong Kong — better enables us to fulfill that goal in Greater China and underscores the importance we place on the Chinese market,” said Joe Bae, Co-President and Co-Chief Operating Officer of KKR.