KKR plans first India-specific debt fund of $1 bn

Global buyout fund Kohlberg Kravis Roberts (KKR) is in early stage discussions to launch a debt fund to invest in India that could raise between $750 million to $1 billion, sources with direct knowledge of the matter said.

KKR’s first dedicated India fund would aim to benefit from the country’s four-year high interest rate and tap the opportunity to lend to cash-strapped Indian corporations.

The firm has not yet sent out marketing materials to potential investors, or limited partners (LP), and would not launch a new fund until it has closed its second pan-Asia fund, targeted at over $6 billion, the sources said.

[caption id=“attachment_426242” align=“alignleft” width=“380”]  The firm has held a first close of $3 billion on the pan-Asia fund. Reuters[/caption]

The firm has held a first close of $3 billion on the pan-Asia fund.

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The sources declined to be identified as the plans were not public.

KKR received approval for a fund, KKR India Alternative Credit Opportunities Fund 1, on August 14, documents posted on the Indian market regulator’s website showed.

“Credit products are already structured and being delivered to Indian corporations through NBFCs (Non-Bank Financial Companies). The AIF (Alternative Investment Funds) licence received further enables KKR to broaden its alternatives strategy in India. Nothing is planned in this regard for the time being,” said a KKR spokesman.

Reuters