The fundraising includes $1.8 billion for the KKR Asia Credit Opportunities Fund II and $700 million from separately managed accounts pursuing a similar approach. With this final close, the fund has become the largest pan-regional performing private credit fund in Asia Pacific, KKR announced on Wednesday.
This closing comes after KKR’s inaugural Asia Pacific dedicated private credit fund, which raised $1.1 billion in 2022 and was the largest initial pan-regional fund focusing on performing credit at the time. Performing private credit consists of loans to companies that are up to date on their repayments, in contrast to distressed or special situation credit.
KKR’s Asia credit platform has already finalized 10 investments through the second fund, totaling $1.9 billion in KKR commitments, alongside other pools of capital. The overall transaction volume from these investments is $4.6 billion.
“Asia is a vital component of KKR’s global credit strategy,” said Diane Raposio, partner and head of Asia Credit and Markets at KKR. She noted that the increasing appetite from investors for credit allocations in the region mirrors structural growth and the demand for flexible, non-bank financing alternatives.
Over the past decade, private credit has seen swift expansion in Asia, although it remains less developed compared to the US and Europe. The market momentum has increased as regional banks have become more discerning in their lending practices, prompting sponsors and corporates to seek tailored financing for acquisitions, refinancing, and growth capital.
The fund will concentrate on performing, privately sourced credit across three primary themes: senior and unitranche direct lending, capital solutions, and collateral-backed investments. Unitranche loans merge senior and subordinated debt into a single facility, providing borrowers with speed and flexibility while offering lenders increased yields.
KKR’s Asia credit strategy aims at opportunities in Australia, Greater China, India, Japan, Korea, New Zealand, and Southeast Asia. Since 2019, the firm has completed over 60 Asia credit investments, with around $8.3 billion invested by KKR and a total transaction value of $27.5 billion. These investments cover sectors including healthcare, education, real estate, logistics, and infrastructure.
SJ Lim, Managing Director and Head of Asia Private Credit at KKR, stated, “Private credit continues to be a relatively new yet attractive opportunity in the region. We observe strong demand for private credit as a crucial tool for sponsors or corporates seeking flexible financing solutions and tailored, partnership-oriented capital to drive growth and address their diverse requirements.”
The recent fund garnered commitments from a diverse investor base, including insurance companies, sovereign wealth funds, pension funds, family offices, banks, and asset managers, highlighting the rising institutionalization of private credit in the region.
Worldwide, KKR has established one of the largest credit investment platforms over the last two decades. As of September 30, 2025, the firm managed approximately $282 billion in credit assets, which encompasses around $143 billion in leveraged credit, $131 billion in private credit, and $8 billion in strategic investments. KKR has a team of about 250 credit investment professionals across 12 offices globally.
KKR is listed on the New York Stock Exchange and operates in private equity, credit, real assets, and insurance under its Global Atlantic Financial Group unit.
