Minnesota SBI proposes $150m commitment to KKR’s Asia buyout fund

REUTERS/Brendan McDermid

The Minnesota State Board of Investments (Minnesota SBI) is looking at a $150-million commitment to KKR Asian Fund IV, the fourth Asia-focused buyout fund of global private equity major KKR & Co.

The proposed commitment is part of the $850-million that the state’s Investment Advisory Council (IAC) has approved for six private market funds. The proposal will be presented to Minnesota SBI’s meeting on February 26, according to an announcement.

Aside from the $150-million commitment to KKR Asian Fund IV, SBI is also considering a commitment of $150 million to Audax Mezzanine Fund V, $100 million to Oaktree Real Estate Debt Fund III, $200 million to PGIM Capital Partners Fund VI, $150 to CVI Credit Value Fund V, and Oaktree Real Estate Opportunities Fund VIII.

KKR is seeking to raise $12.5 billion for its fourth buyout fund targeting Asia. The proposed amount is about a third greater than its previous $9.3-billion fund raised in 2017, much of which has already been invested. In total, KKR’s three previous Asia funds came to about $20 billion.

Over the next three years, KKR expects to raise close to $100 billion for its three largest funds, which includes the Asian Fund strategy, and other strategies, after raising $94 billion in the last three years outside of its big three funds.

KKR swung to a fourth-quarter profit, with a net income of $523.4 million, compared with a loss of $384.6 million a year earlier. Total revenue at KKR was $1.06 billion for the fourth quarter, compared with negative revenue of $178.1 million a year earlier. Operating revenue totalled $962.1 million, down 11 per cent.

Aside from the proposed commitment to KKR’s latest fund, Minnesota SBI had previously committed $100 million to KKR Asian Fund III and a combined $650 million to the PE firm’s four other vehicles, according to SBI’s fourth quarter 2019 report seen by DealStreetAsia.

Additionally, Minnesota SBI also previously committed $99 million to Asia Alternatives Capital Partners V and $50 million to Warburg Pincus China-Southeast Asia II.

Minnesota SBI is the state agency responsible for the investment management of various retirement funds, trust funds, and cash accounts. As of December 31, 2019, the market value of all assets was $104.3 billion, according to data on its website.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.