KKR & Co. Inc. has successfully closed its second dedicated private credit fund targeting the Asia region, securing $2.5 billion in investor commitments. The fund reflects growing demand for direct lending strategies across emerging Asian markets.
- KKR raised $2.5 billion for its second Asia private credit fund
- Fund targets mid-market corporates in Southeast Asia, India, and Northeast Asia
- First Asia private credit fund achieved internal rate of return above 14%
- Investors include global pension funds, sovereign wealth funds, and financial institutions
- Deployment begins in early 2026, with focus on senior and mezzanine debt
- Market conditions support increased demand for alternative credit solutions
KKR & Co. Inc. has finalized the fundraising of its second Asia-focused private credit fund, amassing $2.5 billion in capital commitments from institutional investors. The fund will target senior and mezzanine debt opportunities across corporate borrowers in Southeast Asia, India, and Northeast Asia, focusing on mid-market companies with stable cash flows and growth potential. The scale of the fund underscores continued investor confidence in private credit as a diversifying asset class amid volatile public market conditions. With the first fund’s successful deployment and strong returns reported in earlier stages, this new vehicle signals KKR’s expanded commitment to the region’s credit infrastructure. Investors include pension funds, sovereign wealth entities, and global financial institutions based in North America and Europe. Key performance metrics from the inaugural Asia private credit fund, which deployed over $1.8 billion across 40 transactions between 2020 and 2023, show an internal rate of return exceeding 14%, reflecting favorable risk-adjusted outcomes. The success of this track record helped facilitate rapid capital mobilization for the second fund, which began closing in late 2025 and officially concluded in January 2026. Market participants note that the fund’s launch comes at a pivotal moment, as interest rates stabilize and corporate balance sheets strengthen across several Asian economies. This environment is expected to support higher volumes of non-bank financing, particularly for infrastructure projects, real estate developments, and leveraged buyouts not well served by traditional banks.