KKR, Mubadala team up for Asia-Pacific credit

The two organisations will aim to commit $1bn or more of long-term capital to companies finding it hard to access capital from traditional sources.

Global alternative assets manager KKR has partnered with Mubadala Investment Company, the Abu Dhabi-based sovereign wealth fund, to target private credit opportunities in Asia-Pacific.

A statement said the strategic partnership would deploy at least $1 billion of long-term capital, making it one of the largest players in the region. It will target co-investments in performing credit, with Mubadala investing alongside KKR’s existing pools of capital, including the recently raised KKR Asia Credit Opportunities Fund, a $1.1 billion vehicle.

The statement claimed the partnership would strengthen Mubadala’s exposure to the APAC credit market, while allowing KKR to add significant scale to its APAC credit platform. At a time of global economic and political headwinds, APAC is nonetheless seeing increased demand for funding solutions due to a limited existing supply of capital from both banks and non-banks.

KKR and Mubadala say they will attempt to help address the shortage of flexible capital while supporting businesses in their long-term growth ambitions.

“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,” said Omar Eraiqaat, co-head of credit investments at Mubadala, in the statement.

KKR has invested nearly $3 billion in credit capital since 2019, providing acquisition finance and bespoke capital solutions for companies and sponsors in the environmental services, real estate, education, infrastructure and healthcare sectors. Target markets include Australia, Greater China, India, South Korea, Malaysia, New Zealand, Singapore and Vietnam.