(Corrects paragraph 2 to say $908 million from new investors,
not Asia investors)
By Stephen Aldred and Michael Flaherty
HONG KONG, July 10 KKR & Co raised $6 billion
for its third Asia private equity fund, equipping the firm with
the largest such fund in the region at a time when market
turmoil is creating both opportunities and challenges for
KKR said it raised $1.5 billion, or 26 percent of the fund,
from Asian investors. The firm also raised $908 million from new
investors who did not participate in KKR's first Asia fund.
The Asian II Fund follows the $4 billion Asia fund
it raised in 2007 and a $1 billion China Growth Fund in 2010,
KKR said in a statement. The New York firm has invested more
than $5 billion in Asia since 2005.
KKR's $6 billion fundraising effort, which Reuters reported
late last year, comes as investors eye falling valuations inside
the region's slowing economies. But volatility and tough foreign
investor barriers have also presented plenty of challenges to
the private equity industry in Asia.
KKR is competing with several other major firms in Asia for
investor money, including TPG Capital, Carlyle Group
and Affinity Equity Partners, which are also raising
money to invest in the region.
For KKR, founded by cousins Henry Kravis and George Roberts,
the core group of managers it brought out to run the Asia
operation in 2007 has stayed in place, with Joe Bae remaining at
the helm. KKR has invested in businesses across China, Singapore
and South Korea since it started its first Asia office in Hong
Kong in 2007.
(Additional reporting by Denny Thomas; Editing by Ryan Woo)