Mubadala, KKR partner to co-invest in private credit in Asia Pacific region

Global investment firm KKR and Mubadala Investment Company (Mubadala) 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 $1bn 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 $1.1bn vehicle focused on performing, privately originated credit investments in the region.

The partnership strengthens Mubadala’s exposure in the rapidly growing APAC credit market while enabling KKR to significantly scale its APAC credit platform.

Omar Eraiqaat, co-head of credit investments at Mubadala, said: “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 Asia Pacific to pursue credit opportunities and deliver value to our stakeholders.”

Brian Dillard, partner and head of Asia Pacific Credit at KKR, 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.”

In APAC, KKR has deployed nearly $3bn in credit capital since 2019. This has included providing acquisition financing and bespoke capital solutions for companies and financial sponsors in the environmental services, real estate, education, infrastructure, and healthcare sectors. KKR Credit has made investments across APAC, including Australia, Greater China, India, Korea, Malaysia, New Zealand, Singapore, and Vietnam. The APAC credit business is part of KKR’s approximately $178bn global credit platform.

In recent news, Mubadala Capital, the global asset management firm and a subsidiary of Abu Dhabi’s Mubadala Investment Company, has acquired snack food contract manufacturer TruFood Manufacturing. Trufood, the Pennsylvania-headquartered manufacturer is being acquired from funds affiliated with AUA Private Equity Partners.

Read: Abu Dhabi’s Mubadala Capital acquires US-based TruFood