KKR & Co. (KKR:US), the buyout firm co-founded by Henry Kravis and George Roberts, is gathering $2 billion in the first round of capital raising for a new Asia fund, three people with knowledge of the matter said.
KKR, based in New York, is seeking as much as $6 billion for the fund, and plans a so-called first close in June, the people said, asking not to be identified because the information is private.
The fund will be KKR’s second targeting Asia, where private-equity investment jumped 38 percent from 2009 to last year according to estimates from Asian Venture Capital Journal. Carlyle Group LP (CG:US) and TPG Capital are also amassing regional funds as Asia’s economies outpace the U.S. and Europe.
Steven Okun, a spokesman for KKR in Asia, declined to comment on the new fund.
KKR is offering investors in its KKR Asian Fund II the option of a lower management fee or a greater share of commissions levied on its portfolio companies, according to marketing documents obtained by Bloomberg News in December.
KKR raised (KKR:US) $4 billion for its first Asia fund in 2007. That fund was generating an 11.3 percent net internal rate of return as of Sept. 30, according to the marketing documents.
Fifty-three funds were attempting to raise a total of $22.3 billion to invest exclusively in Asia as of last month, according to data compiled by Preqin Ltd., a London-based research firm.
KKR established a presence in Asia in late 2005 and now has six offices in the region with 45 investment professionals. It has made 22 investments in Asia, investing and committing about $4.6 billion in equity, the marketing documents showed.
The buyout firm said last month its first-quarter profit rose 4.6 percent to $683.8 million, beating analysts’ estimates as the carrying value of its holdings rose.
To contact the reporters on this story: Sabrina Willmer in New York at firstname.lastname@example.org; Cathy Chan in Hong Kong at email@example.com
To contact the editor responsible for this story: Philip Lagerkranser at firstname.lastname@example.org