KKR closes $2.5 billion Asia-Pacific credit fund, deploys more than half across 10 deals

MUMBAI: KKR has closed its second Asia-Pacific performing credit fund with $2.5 billion in capital, deploying more than half across 10 investments, the global investment firm said in a statement on Thursday.

The fund, which provides private credit solutions to companies and sponsors, will continue investing in performing credit opportunities across three primary themes: senior and unitrenched direct lending, capital solutions, and collateral-backed investments.

The corpus comprises $1.8 billion from KKR’s Asia Credit Opportunities Fund (ACOF II) and $700 million from separately managed accounts focused on similar investments. The 10 transactions executed by the credit platform represent roughly $1.9 billion in capital deployed, with a total transaction value of $4.6 billion.

“Asia is a key pillar of KKR’s global credit strategy. The close of ACOF II demonstrates the breadth and scale we have built across our Asia credit platform, spanning both private and liquid markets. We are seeing growing investor demand for allocation to credit in the region,” Diane Raposio, partner and head of Asia Credit & Markets at KKR. “Our pan-Asia approach and ability to leverage the broader KKR Asia platform uniquely positions us to continue sourcing and executing interesting opportunities across the region for our investors.”

The fund comes nearly four years after KKR raised its inaugural Asia-Pacific dedicated private credit and credit opportunities fund, which closed at $1.1 billion. According to the statement, ACOF II has attracted commitments from a diverse mix of investors, including insurance companies, public and corporate pension funds, sovereign wealth funds, family offices, banks, corporates, and asset managers.

The private credit market in India has surged over the past 12-18 months, with domestic and global firms entering as companies seek faster, more flexible capital than traditional lenders can provide. Domestic players such as Motilal Oswal Alternates, ASK Group, True North, Edelweiss, and Multiples Alternate Asset Management have joined global firms like KKR and Blackstone to capitalize on the opportunity.

The global private credit market is estimated at over $3 trillion, according to EY, while PwC estimates India’s market at roughly $10 billion in deal size in 2024 with assets under management around $25 billion.

Across the Asia-Pacific region, KKR has completed over 60 credit investments in the past seven years, deploying around $8.3 billion and generating a total transaction volume of $27.5 billion. Its investments span healthcare, education, real estate, logistics, and infrastructure, targeting opportunities in Australia, Greater China, India, Japan, Korea, New Zealand, and Southeast Asia.

“Private credit remains a relatively nascent yet compelling opportunity across the region. We see strong demand for private credit as an important tool for sponsors or corporates seeking flexible financing solutions and bespoke, partnership-oriented capital to support growth and meet their diverse needs,” said SJ Lim, managing director and head of Asia Private Credit at KKR.

Lim added that the performing credit strategy is built on themes such as rising consumption, urbanization, and digitalization.

As of 30 September 2025, KKR manages approximately $282 billion in credit assets globally, including $143 billion in leveraged credit, $131 billion in private credit, and $8 billion in strategic investments. The firm’s credit team comprises around 250 investment professionals across 12 offices worldwide.