PE HUB Wire Highlights, 8.22.19


private equity, mergers, M&A
Private Equity Editor Chris Witkowsky reflects at home. Photo by Wendy Witkowsky

KKR preps next Asia fund, Paul Allen family office to make Asian expansion

Happy Thursday!

What’s the big news this week? Seems slow, and quiet. We’ve had a few significant people moves this week and, of course, fundraising hasn’t let up.

Asia: The biggest story is word that KKR could bring its next Asia fund back to market as early as the fourth quarter, or in early 2020. That’s what an LP told me who has heard the pitch. As always with fundraising, timetables could change depending on all sorts of factors. A KKR spokeswoman declined to comment. Check out my story here for the particulars.

KKR in 2017 closed what, at the time, was the largest Asia-dedicated fund fon $9.3 billion. That record was eclipsed the next year by Chinese PE firm Hillhouse Capital, which closed an Asia fund on $10.6 billion.

KKR’s Asia team is one of its most successful ventures. Joseph Bae began growing the formal group around 2005. He was promoted to co-president and co-chief operating officer of the firm in 2017 along with Scott Nuttall. Ming Lu now leads KKR’s Asia-Pacific focus.

Asia has been a popular destination for private equity capital, both from Western-based firms that create teams in teh region, or local firms. Firms in the Asia-Pacific region raised more than $142.6 billion over the five-year period to March 2019, according to PEIresearch.

In 2018, Asia-Pacific region represented about $883 billion in assets under management, or 26 percent of the global private equity market, up from 9 percent a decade ago, Bain & Coreported earlier this year. Private equity’s share of the Asia-Pacific M&A market rose 6 percentage points to 17 percent last year, Bain & Co. said.

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