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KKR breaks $5bn barrier for second Asian fund

12 Apr 2013

dollar2_lrgBuyout major KKR’s second Asian fund has less than $1bn to go until its final close after breaking the $5bn mark.

KKR Asian Fund II has now raised nearly $4.8bn from 106 LPs, which together with a $250m commitment from the GP gives it $5.05bn, a filing with US securities regulators revealed.

Demand for the Asian fund appears to be much stronger than for the firm’s North America XI fund, which has taken longer than expected to reach its target of up to $8bn.

The firm had reportedly been struggling to hit the target due to LP caution and global regulatory restraints imposed in the wake of the financial crisis.

LPs already backing the Asian fund included the Washington State Investment Board, which contributed $400m and the Oregon Investment Council with a $225m investment.

The Caymans-registered vehicle is targeting $6bn, up 50 per cent from the $4bn raised for its predecessor in 2007.

As at the end of September last year, the first fund had an IRR of 13.1 per cent and a cash multiple of 1.4 cash multiple, according to CalPERS, which invested $275m.

JP Morgan Securities is acting as a placement agent for the fund and will be owed nearly $3.6m in sales commissions, according to the filing.

The fund was launched in June last year with commitments of just over $3bn including the $250m GP commitment.

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