KKR to raise second India credit fund

The US-based asset manager is raising its second credit vehicle in India and is reportedly targeting wealthy individuals and family offices based in the sub-continent.  

KKR India is aiming to raise at least INR1,500 crore ($277.8 million; €204 million) for its second credit-focused fund in India, according to a recent report. The firm is looking to raise money through high-net-worth individuals and family offices in India, with a co-investment option for the parent company, Live Mint reported citing sources.

KKR declined to comment.

The first fund raised 500 crore in November 2013 with additional capital in co-investments and separate accounts tied to the strategy. The India Alternative Credit Opportunities Fund posted 18 percent IRR.

The firm has invested about INR17,000 crore so far into 55 Indian companies through its various credit platforms. Borrowers include GMR Holdings, Avantha Group and Apollo Hospitals Enterprise. In its latest deal, KKR India invested $150 million in JBF Industries, a manufacturer of polyester value-chain products, in July. As part of a debt and equity transaction, KKR said it would acquire a 20 percent stake in JBF along with zero-coupon convertible preference shares with 14.5 percent voting rights in a Singapore subsidiary.

KKR is headquartered in New York and has $101.6 billion in assets under management. KKR’s credit co-heads have previously told PDI that they’re seeing more special situations investment opportunities in Asia and Europe.