Mubadala, UAE’s sovereign wealth fund, and KKR, a leading American global investment firm, have signed a strategic partnership to co-invest across performing private credit opportunities in the Asia Pacific (APAC) region.
The Partnership aims to deploy at least $1 billion of long-term capital, providing bespoke credit solutions to companies and sponsors. Mubadala will deploy its capital alongside KKR’s existing pools of capital, including the recently raised KKR Asia Credit Opportunities Fund, a $1.1 billion vehicle focused on performing, privately originated credit investments in the region.
This move commences at a time when the region’s growth has fueled an enormous demand for funding solutions, as many companies, sponsors, and entrepreneurs face challenges accessing flexible financing due to a limited supply of capital from banks and non-bank lenders. The Partnership between Mubadala and KKR aims to address this shortage of flexible capital while supporting businesses in APAC in achieving their long-term growth ambitions.
“Expanding into the Asia Pacific region is a core pillar of our strategy as this market presents unique credit investment opportunities, driven by its rapid growth and high demand for non-bank capital. We are very pleased to collaborate with KKR, an experienced and high-caliber partner, and we look forward to leveraging their deep experience and capabilities in the Asia Pacific to pursue credit opportunities and deliver value to our stakeholders.”
Mr. Brian Dillard, Partner & Head of Asia Pacific Credit at KKR, added that “We are excited to strengthen our deep and longstanding relationship with Mubadala through this strategic partnership. Alongside Mubadala, KKR will have the additional resources to materially increase the size of our investments, pursue more opportunities across Asia, and extend innovative capital solutions to meet the rising demand of borrowers. We look forward to playing an even larger role in helping to meet Asian businesses’ growing financing needs.”