KKR has closed its second Asia-focused private credit fund at $2.5bn, according to a report by Bloomberg citing people familiar with the matter. The final close took place in late December, marking a step up from the firm’s inaugural $1.1bn regional vehicle raised in 2022.
The Asia Credit Opportunities Fund II includes around $700m from separately managed accounts and is focused on performing credit opportunities across the region. The fund is reportedly targeting returns in the low-to-mid-teens.
Investors have increasingly targeted Asia’s private credit market, which is expected to grow to $92bn by 2027 from $59bn in 2024, driven by demand for higher yields and portfolio diversification, according to industry data.
KKR has been expanding its private credit footprint in Asia, including hiring its first Japan-based credit specialist last year and completing transactions in Australia and India. As of September, the firm managed $315bn in credit assets worldwide, including liquid strategies.
