KKR announced it has completed a $2.5 billion raise to back privately originated, performing credit investments across Asia Pacific, adding fresh firepower to a regional strategy the firm says is benefiting from rising demand for flexible, non-bank financing.
The capital pool comprises $1.8 billion for KKR Asia Credit Opportunities Fund II (ACOF II) and an additional $700 million gathered through separately managed accounts pursuing the same opportunity set. KKR described ACOF II as the largest pan-regional performing private credit fund in the Asia Pacific at closing.
The raise follows KKR’s first Asia Pacific-dedicated private credit vehicle, which closed at $1.1 billion in 2022 and was positioned as the largest inaugural pan-regional fund focused on performing credit. Since launching ACOF II, KKR said its Asia Credit platform has signed 10 investments through the fund, representing $1.9 billion of KKR commitments when including other pools of capital, and a total transaction volume of $4.6 billion.
KKR said ACOF II will continue its predecessor’s focus on performing, privately originated credit and will target opportunities across three primary themes: senior and unitranche direct lending, capital solutions, and collateral-backed investments. The firm framed the strategy as a way to deliver customized financing structures to corporates and sponsors, pairing underwriting and structuring capabilities with lender protections and active portfolio management.
KKR’s leadership pointed to structural growth drivers across the region—such as rising consumption, urbanization, and digitalization—as supportive tailwinds for private markets and, by extension, private credit. The firm also emphasized a pan-Asia approach supported by local presence and access to KKR’s broader Asia platform across private and liquid credit markets.
The investor base for the latest raise included a mix of new and existing limited partners, spanning insurance companies, public and corporate pension funds, sovereign wealth funds, family offices, banks, corporates, and asset managers, KKR said.
In terms of deployment history, KKR said it has closed more than 60 investments in Asia Pacific through its Asia Credit strategy since 2019, accounting for roughly $8.3 billion invested by KKR and a total transaction value of $27.5 billion. The firm said those investments have included acquisition financing and bespoke capital solutions across sectors such as healthcare, education, real estate, logistics, and infrastructure, with a geographic remit that includes Australia, Greater China, India, Japan, Korea, New Zealand, and Southeast Asia.
Globally, KKR said it manages approximately $282 billion of credit assets as of Sept. 30, 2025, consisting of about $143 billion in leveraged credit, $131 billion in private credit, and $8 billion in strategic investments. The firm added that its credit platform is supported by roughly 250 credit investment professionals across 12 offices worldwide.
KEY QUOTES:
“Asia is a key pillar of KKR’s global credit strategy. The close of ACOF II demonstrates the breadth and scale we have built across our Asia credit platform, spanning both private and liquid markets. We are seeing growing investor demand for allocation to credit in the region. Our pan-Asia approach and ability to leverage the broader KKR Asia platform uniquely positions us to continue sourcing and executing interesting opportunities across the region for our investors.”
Diane Raposio, Partner and Head of Asia Credit & Markets, KKR
“Private credit remains a relatively nascent yet compelling opportunity across the region. We see strong demand for private credit as an important tool for sponsors or corporates seeking flexible financing solutions and bespoke, partnership-oriented capital to support growth and meet their diverse needs. Our performing credit strategy is based on the same long term structural themes such as rising consumption, urbanization and digitalization that have underpinned the growth of private markets in Asia.”
SJ Lim, Managing Director and Head of Asia Private Credit, KKR
