Kohlberg Kravis Roberts has opened an office in Singapore, its seventh in Asia and 14th worldwide.
“Singapore is at the heart of the dynamic growth that is taking place across Southeast Asia,” Henry Kravis, co-founder, co-chairman and co-chief executive of KKR, said in astatement. “Now is the time to establish a permanent presence. This means we will be even more committed to understanding local business environments, their unique challenges and opportunities, and the specific needs of its entrepreneurs, investors, workers and business leaders.”
Singapore: KKR's newest office locale
The office will serve as the regional hub of KKR's Southeast Asian investments, which are overseen by Ming Lu, member and regional leader of Southeast Asia, and directors Kabir Mathur from Singapore and Ridha Wirakusumah from Indonesia.
To date, KKR has invested over $1 billion across four investments in the region, including a $159 million investment in Masan Consumer, the largest-ever private equity transaction in Vietnam.
Increasing consumer affluence, domestic consumption, divestments from state-owned enterprises and demand for improved infrastructure are distinct opportunities that KKR sees in the Southeast Asian region. Southeast Asia is KKR’s second largest investment destination after China, according to the statement.
Lu also added in the statement that many local Southeast Asian businesses seek to both grow in their own markets and “expand internationally,” and KKR hopes to tap into this market demand in the region.
KKR launched its third fund dedicated specifically to the Asia-Pacific region this year, and as of August had raised $3.22 billion in commitments, according to PE Asia’s data division. The fund is targeting $5.75 billion. In 2010, KKR’s China Growth Fund closed at $1.02 billion, more than $200 million above the $800 million target size, according to the data division of PE Asia.