Global alternative investment firm KKR is planning to start a dedicated term loan business in India, further expanding its private credit offering in the country, according to local news reports.
The new business will operate under the firm’s non-banking financial company, KKR India Financial Services. It will target the growth capital market by providing senior secured loans to companies and the term of the loan will be flexible according to need, say sources close to the matter.
Tashwinder Singh, director of KKR Capital Markets, will lead the new business which is currently in the process of hiring.
The unit is in talks for its first potential deal with Bharat Gears Ltd, India’s largest automotive gear manufacturer. The firm plans to lend INR100-125 crore to the company, according to the same reports.
KKR declined to comment on the subject.
According to the company’s white paper last year, Henry McVey, the firm’s head of global macro and asset allocation, sees debt as eventually becoming a more attractive investment than equities in India. In particular, the country continues to see a “burgeoning opportunity” across performing private credit.
The alternative investment giant is one of the most active foreign managers in the country making private equity and structured credit investments. Several vehicles have been launched under the umbrella of the company’s lending business in India including KKR India Alternative Credit Opportunities Fund, the first Alternative Investment Fund (AIF) raised by KKR India; and KKR India Asset Finance Pvt. Ltd, a realty-focused NBFC.