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KKR to close $4bn Asia fund in third quarter

KKR’s first Asia-dedicated fund is set to close soon with $4 billion of commitments, according to a SEC filing ahead of its $1.25 billion initial public offering.

Kohlberg Kravis Roberts’ Asian fund, the firm’s first vehicle dedicated to the region, will have its final close on $4 billion (€3 billion) in the third quarter of 2007.

The information, previously reported by PEO, was confirmed in a regulatory filing related to the firm’s planned $1.25 billion initial public offering.

Joseph Bae, head of KKR’s Asia investment team, said before a conference crowd earlier this year that he expects further growth in Asia’s private equity market, as larger transactions and international expansions become more commonplace.

Deals are beginning to hit the $1 billion range and international growth strategies are increasingly sought, Bae said at the annual Super Return conference in Frankfurt.

“Private equity in Asia is developing more in terms of a traditional buyout market, where investors focus on operational improvement and long-term investment,” he said.

According to Bae, Reuters reported, KKR’s portfolio companies in the region have combined revenues of $10 billion, 65,000 employees, 50 manufacturing plants and more than 25 joint ventures.

The Carlyle Group, Warburg Pincus, Texas Pacific Group and Permira are among the large international private equity firms already active in the region.