KKR Secures $2.5 Billion to Expand Private Credit Investments Across Asia Pacific

Global investment giant KKR has completed a $2.5 billion fundraise to scale its private credit strategy across Asia Pacific, creating the largest pan-regional performing private credit fund in the region. The move highlights rising investor demand for flexible, non-bank financing solutions amid tightening bank lending.

KKR Raises $2.5 Billion for Asia Pacific Private Credit Strategy

Fundraise Creates Largest Pan-Regional Private Credit Fund

Global investment firm KKR has completed a $2.5 billion fundraising to support privately originated performing credit investments across Asia Pacific, the firm said in a press statement on Wednesday.

The capital raise includes $1.8 billion for KKR Asia Credit Opportunities Fund II and $700 million from separately managed accounts pursuing a similar investment strategy. At final close, KKR said the fund has become the largest pan-regional performing private credit fund in Asia Pacific.

Building on KKR’s First Asia Credit Fund

Strong Momentum Since 2022

The latest close follows KKR’s first Asia Pacific–dedicated private credit fund, which raised $1.1 billion in 2022 and was the largest inaugural pan-regional performing credit fund at the time.

Performing private credit refers to loans made to companies that remain current on repayments, distinguishing it from distressed or special situations credit strategies.

Early Deployment and Deal Activity

10 Investments Signed Through Fund II

KKR’s Asia credit platform has already signed 10 investments through the second fund, representing $1.9 billion in KKR commitments, including capital from other investment pools.

The total transaction volume across these deals stands at $4.6 billion, underlining strong deal flow and deployment momentum in the region.

Asia Central to KKR’s Global Credit Strategy

Rising Demand for Flexible Capital

“Asia is a key pillar of KKR’s global credit strategy,” said Diane Raposio, partner and head of Asia Credit and Markets at KKR.

She added that growing investor demand for credit allocations in the region reflects structural economic growth as well as an increasing need for flexible, non-bank financing solutions.

Private Credit Gains Ground Across Asia

Banks Turn Selective, Sponsors Seek Customised Financing

Private credit has expanded rapidly across Asia over the past decade, even though it remains smaller than markets in the US and Europe. The segment has gained traction as regional banks have become more selective in lending, while sponsors and corporates increasingly seek customised financing for acquisitions, refinancing, and growth capital.

Investment Focus Areas

Three Core Private Credit Themes

The fund will invest in performing, privately originated credit across three key strategies:

1. Senior and Unitranche Direct Lending

Unitranche loans combine senior and subordinated debt into a single facility, offering speed and flexibility to borrowers while delivering enhanced yields to lenders.

2. Capital Solutions

Tailored financing structures designed to support complex corporate and sponsor-led transactions.

3. Collateral-Backed Investments

Credit opportunities supported by tangible or contracted cash-flow assets.

Geographic Coverage Across Asia Pacific

According to KKR, its Asia credit strategy targets opportunities in:

• Australia

• Greater China

• India

• Japan

• Korea

• New Zealand

• Southeast Asia

Since 2019, KKR has closed more than 60 Asia credit investments, deploying about $8.3 billion of its own capital, with a total transaction value of $27.5 billion. These investments span sectors including healthcare, education, real estate, logistics, and infrastructure.

Private Credit Still Early but Highly Attractive

“Private credit remains a relatively nascent yet compelling opportunity across the region,” said SJ Lim, Managing Director and Head of Asia Private Credit at KKR.

He added that private credit is increasingly viewed as a vital financing tool for sponsors and corporates seeking bespoke, partnership-oriented capital to support growth and meet diverse funding needs.

Diverse Global Investor Participation

Institutional Backing Strengthens Market Confidence

The latest fund attracted commitments from a wide range of global investors, including:

• Insurance companies

• Sovereign wealth funds

• Pension funds

• Family offices

• Banks

• Asset managers

This broad participation reflects the growing institutionalisation of private credit across Asia Pacific.

KKR’s Global Credit Platform at a Glance

Globally, KKR has built one of the largest credit investment platforms over the past two decades.

As of September 30, 2025, the firm managed approximately $282 billion in credit assets, including:

• $143 billion in leveraged credit

• $131 billion in private credit

• $8 billion in strategic investments

KKR employs around 250 credit investment professionals across 12 offices worldwide.

About KKR

KKR is listed on the New York Stock Exchange and operates across private equity, credit, real assets, and insurance through its Global Atlantic Financial Group unit.