A leading global investment firm, KKR & Co Inc. (NYSE: KKR) shares increase in pre-market session on Monday after the firm signed a Strategic Partnership with Mubadala Investment Company that will see the two firms co-investing across performing private credit opportunities in the Asia Pacific region.
The Partnership intends to deploy at least $1 billion in long-term financing, offering firms and sponsors customized lending options. Mubadala’s cash will be used alongside KKR’s existing capital pools, including the newly created KKR Asia Credit Opportunities Fund, a US$1.1 billion vehicle focused on performing, privately originated credit assets in the area.
The Partnership is a significant step forward for both businesses, as it expands Mubadala’s exposure in the fast expanding APAC credit market while allowing KKR to considerably develop its APAC credit platform. The Partnership is launching at a time when the region’s expansion has created a huge need for finance solutions, as many firms, sponsors, and entrepreneurs are having difficulty getting flexible financing due to a restricted availability of capital from banks and non-bank lenders. The partnership between Mubadala and KKR intends to solve this lack of flexible finance while also assisting APAC enterprises in reaching their long-term growth goals.
Co-Head of Credit Investments at Mubadala, Omar Eraiqaat said that growing into the Asia Pacific area is a key component of their strategy since this market offers unique credit investment prospects due to its rapid expansion and significant demand for non-bank capital. They are thrilled to be working with KKR, a seasoned and high-caliber partner, and they look forward to using their extensive knowledge and skills in Asia Pacific to seek credit opportunities and create value to its stakeholders.
The Partner & Head of Asia Pacific Credit at KKR, Brian Dillard added,
“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.”