Global private equity giant KKR has inked a deal with private credit lenders for a loan of approximately A$200 million ($133 million) for Australian accounting software firm MYOB Ltd, Bloomberg reported.
KKR acquired the accounting firm back in 2019.
The deal with private credit lenders will have a payment-in-kind (PIK) feature, which allows interest to be added to the principal amount, the report added.
MYOB will reportedly use the new loan to repay an A$145-million junior debt tranche and to finance a deferred payment for its 2022 acquisition of human resources fintech Flare.
KKR acquired MYOB in 2019, through its flagship Asia Fund III, in a $1.14 billion takeover bid.
MYOB offers over 50 business management solutions including accounting, payroll, payments, retail point of sale, CRM and professional tax solutions.
It caters to medium and small businesses in Australia and New Zealand and provides support through client service channels including a network of over 50,000 accountants, bookkeepers, and other consultants.
The deal comes when private credit is gaining ground as companies tap alternative ways to raise capital. In Asia, private credit fundraising has grown from $6.3 billion in 2019 to $11.2 billion in 2023.
“Bank capital remains the dominant source of financing in the region, but we believe it is not sufficient to address the growing demand,” said SJ Lim, Managing Director, Asia Credit, KKR in an interview with DealStreetAsia in April.
KKR is currently deploying capital from its $1.1 billion private credit fund for Asia Pacific and some separately managed accounts for its private credit strategies in the region, led by 15 investment professionals across its offices in Singapore, India, Greater China, and Australia.
