KKR & Co. and Abu Dhabi sovereign wealth fund Mubadala Investment Co have jointly earmarked at least $1 billion for private lending in the Asia Pacific region.
The agreement, “strengthens Mubadala’s exposure in the rapidly growing APAC credit market,” KKR will be able to increase the scope of its activities in the region, according to a statement on Monday.
Bucking an industry-wide slowdown, some of alternative-asset investors are building up their presence in Asia at a brisk pace, where bank lending has long been the mainstay.
Private credit involves businesses getting money directly from a fund, which often offers more contractual flexibility than getting a loan from a bank or even borrowing from a shadow lender.
In Asia-Pacific, KKR said it has deployed nearly US$3 billion in credit capital since 2019.
There is demand for private capital “as many companies, sponsors, and entrepreneurs face challenges accessing flexible financing due to limited supply of capital from banks and non-bank lenders,” the statement said.
