KKR and Mubadala Partner for APAC Private Credit10.24.2022
KKR, a leading global investment firm, and Mubadala Investment Company (“Mubadala”), a global sovereign investor, today announced the signing of a Strategic Partnership (the “Partnership”) that will see the two firms co-investing across performing private credit opportunities in the Asia Pacific (“APAC”) region.
The Partnership aims to deploy at least US$1 billion of long-term capital, providing bespoke credit solutions to companies and sponsors. Mubadala will deploy its capital alongside KKR’s existing pools of capital, including the recently raised KKR Asia Credit Opportunities Fund, a US$1.1 billion vehicle focused on performing, privately originated credit investments in the region.
— Latest News from Business Wire (@NewsFromBW) October 24, 2022
The Partnership represents a key milestone for both organizations, as it strengthens Mubadala’s exposure in the rapidly growing APAC credit market, while enabling KKR to significantly scale its APAC credit platform. The Partnership commences at a time when the region’s growth has fueled an enormous demand for funding solutions, as many companies, sponsors, and entrepreneurs face challenges accessing flexible financing due to limited supply of capital from banks and non-bank lenders. The Partnership between Mubadala and KKR aims to address this shortage of flexible capital while supporting businesses in APAC in achieving their long-term growth ambitions.
Omar Eraiqaat, Co-Head of Credit Investments at Mubadala, said: “Expanding into the Asia Pacific region is a core pillar of our strategy as this market presents unique credit investment opportunities, driven by its rapid growth and high demand for non-bank capital. We are very pleased to collaborate with KKR, an experienced and high-caliber partner, and we look forward to leveraging their deep experience and capabilities in Asia Pacific to pursue credit opportunities and deliver value to our stakeholders.”
Brian Dillard, Partner & Head of Asia Pacific Credit at KKR, added, “We are excited to strengthen our deep and longstanding relationship with Mubadala through this strategic partnership. Alongside Mubadala, KKR will have the additional resources to materially increase the size of our investments, pursue more opportunities across Asia, and extend innovative capital solutions to meet the rising demand of borrowers. We look forward to playing an even larger role in helping to meet Asian businesses’ growing financing needs.”
In APAC, KKR has deployed nearly US$3 billion in credit capital since 2019. This has included providing acquisition financing and bespoke capital solutions for companies and financial sponsors in the environmental services, real estate, education, infrastructure, and healthcare sectors. KKR Credit has made investments across APAC, including Australia, Greater China, India, Korea, Malaysia, New Zealand, Singapore, and Vietnam. The APAC credit business is part of KKR’s approximately US$178 billion global credit platform.1
The Singapore exchange will become a limited partner in the venture capital firm's latest strategy.
LMAX Group intends to offer trading of NDFs in early 2023.
The sovereign wealth fund said the investment was 0.09% of its net portfolio value.
MAS’ Project Guardian for potential DeFi in wholesale funding markets has completed its first live trades.
Core Climate will provide trading of voluntary carbon credits.