Global investment giant KKR announced the successful closure of its second Asia-Pacific performing credit fund on Thursday. The fund has secured a substantial $2.5 billion in committed capital. KKR revealed that it has already deployed more than half of this amount across ten distinct investment transactions.
Fund Structure and Investment Strategy
The newly closed fund will provide private credit solutions to companies and financial sponsors throughout the Asia-Pacific region. It plans to focus its investments on three primary areas of performing credit. These include senior and unitranche direct lending, capital solutions for businesses, and collateral-backed investment opportunities.
The total $2.5 billion corpus consists of two main components. KKR's Asia Credit Opportunities Fund II contributed $1.8 billion. An additional $700 million came from separately managed accounts that concentrate on similar investment strategies.
Significant Capital Deployment
KKR's credit platform has already executed ten transactions using this fund. These deals represent approximately $1.9 billion in deployed capital. The total transaction value for these investments reaches an impressive $4.6 billion.
Diane Raposio, Partner and Head of Asia Credit & Markets at KKR, emphasized the region's importance. "Asia represents a key pillar of KKR's global credit strategy," she stated. "The successful close of ACOF II demonstrates the breadth and scale we have established across our Asia credit platform, which spans both private and liquid markets. We are observing growing investor demand for credit allocation in this region."
Raposio further explained KKR's competitive advantage. "Our pan-Asia approach and ability to leverage the broader KKR Asia platform uniquely position us to continue sourcing and executing compelling opportunities across the region for our investors."
Market Context and Growth Trajectory
This fund closure comes nearly four years after KKR raised its inaugural Asia-Pacific dedicated private credit and credit opportunities fund. That earlier fund closed with $1.1 billion in capital. The new ACOF II fund has attracted commitments from a diverse investor base. This includes insurance companies, public and corporate pension funds, sovereign wealth funds, family offices, banks, corporations, and asset managers.
The private credit market in India has experienced significant growth over the past 12 to 18 months. Both domestic and global firms have entered this space as companies seek faster and more flexible capital than traditional lenders typically provide. Domestic players like Motilal Oswal Alternates, ASK Group, True North, Edelweiss, and Multiples Alternate Asset Management have joined global firms such as KKR and Blackstone to capitalize on this expanding opportunity.
Regional and Global Scale
According to industry estimates, the global private credit market exceeds $3 trillion. Professional services firm PwC estimates India's market at roughly $10 billion in deal size for 2024, with assets under management around $25 billion.
Across the Asia-Pacific region, KKR has completed more than 60 credit investments over the past seven years. The firm has deployed approximately $8.3 billion in capital, generating a total transaction volume of $27.5 billion. Its investments span multiple sectors including healthcare, education, real estate, logistics, and infrastructure. KKR targets opportunities in Australia, Greater China, India, Japan, Korea, New Zealand, and Southeast Asia.
SJ Lim, Managing Director and Head of Asia Private Credit at KKR, commented on the regional opportunity. "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."
Lim added that the performing credit strategy builds on fundamental themes such as rising consumption, urbanization, and digitalization across Asia.
KKR's Global Credit Footprint
As of September 30, 2025, KKR manages approximately $282 billion in credit assets worldwide. This includes $143 billion in leveraged credit, $131 billion in private credit, and $8 billion in strategic investments. The firm's credit team consists of around 250 investment professionals operating from 12 offices across the globe.
