KKR bags $300m commitment for latest Asia fund from New York pension

REUTERS/Brendan McDermid

Private equity heavyweight KKR & Co has secured a $300 million capital commitment for its latest Asia-focused fund, KKR Asian Fund IV, from the New York State Common Retirement Fund (CRF).

The KKR fund will seek pan-Asia investments with a focus on control-oriented buyout transactions, according to CRF’s monthly transaction report in June. The investment was closed in June.

The US private equity giant is seeking to raise $12.5 billion for its fourth buyout fund targeted at Asia. It has received commitments from Asian limited partners such as life insurance companies Fubon and Cathay. It had also bagged a $150 million commitment from the Minnesota State Board of Investment in February.

The fourth fund is about one-third larger than its predecessor fund, which closed in 2017 at $9.3 billion. The third Asia fund is still actively deploying capital and has recently pumped hundreds of millions of dollars into businesses such as India’s Jio Platforms and JB Chemicals & Pharmaceuticals, Philippine power firm First Gen and Vietnam-based property company Vinhomes.

The targeted fourth regional fund, once closed, will surpass the $10.6-billion record set by Hillhouse Capital in 2018. KKR’s Asian Fund IV was said to have already gathered over $10 billion, according to multiple media reports.

New York CRF’s other approved commitments in June include €500 million ($588.93 million) to CVC Capital Partners VIII. CVC expects to make control-oriented buyout investments in Western Europe and North America. 

Meanwhile, the retirement fund has also made a commitment of $200 million to Ares Corporate Opportunities Fund VI. Ares will seek investments in North American companies within the consumer & retail, healthcare, services & technology, and industrials sectors. 

CRF invests in private equity partnerships directly and through separately managed accounts. It is the third largest pension fund in the United States. It has a value of $194.3 billion in assets held in trust for pension benefits as of March 31, 2020.

There are over 3,000 state and local government participating employers and more than one million members, retirees and beneficiaries, according to 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.