KKR raises record $9.3bn for Asian fund

THE private equity giant behind Trainline and Toys ‘R’ Us has smashed a new money-raising record in Asia after closing a $9.3bn (£7.2bn) fund to pump into local businesses.

Emerging as the latest private equity house to target Asia’s rising middleclass, New York-based KKR said its new war chest is 55pc bigger than its previous, second Asian fund and the largest of its kind in the region.

The money, from a range of investors including public pensions, insurance companies and wealthy individuals, will be pumped into opportunities that arise from growing “consumption and urbanisation” in the region.

It will also look to make acquisitions from large conglomerates in countries such as Japan, where KKR recently bought a chip-making device from Hitachi and an auto-parts maker from Nissan. “The Asia market offers many compelling investment opportunities in private equity,” said KKR Asia managing partner Joseph Bae,

Competition is heating up in the Asia-pacific region, where private equity deal value reached $92bn in 2016 – the second-best year on record – and is showing “few signs of retreat,” according to Bain & Co. KKR’S US rival Warburg Pincus closed a $2bn China fund last December.

This latest fundraising, which includes an $800m top-up from the group’s own pockets, was announced hours after CVC Capital Partners closed its largest-ever fund. The €16bn (£14bn) fund from the private equity giant broke a new record in Europe, with the money to be spent on businesses across Europe and North America.