US private equity firm Kohlberg Kravis Roberts & Co LP (KKR) is in early stage discussions to raise $750 million to $1 billion (Rs4160 crore – Rs5,546 crore) for investing in India, Reuters yesterday reported in the US, citing sources with direct knowledge of the matter.
The move comes even as New York-based Apollo Global Management is already in the process of raising a $1-billion India-focused debt fund in partnership with India’s lrgest private sector bank, ICICI Bank.
New York Stock Exchange-listed KKR has received Indian regulatory approval for a fund, KKR India Alternative Credit Opportunities Fund 1, on 14 August, the report said.
Reuters reported citing sources that KKR has not yet sent out marketing materials to potential investors and would not launch a new fund until it has closed its second pan-Asia fund, which aims to raise more than $6 billion.
With over $60 billion in assets under management, KKR has been operating in India since the last three years and has so far invested in six deals worth around $1 billion in the country.
Its investments include the $900-million acquisition of Flextronics’ India unit, $250-million in Bharti Infratel, $55 million in Kolkata-based non-banking finance company Magma Fincorp and smaller investments in Aricent, Avantha Power and Infrastructure, Café Coffee Day, TVS Logistics Services and Dalmia Cement
The media had earlier reported that KKR is likely to start an India-focused fund to invest across listed and unlisted Indian companies, mainly in the energy, power, infrastructure, auto components, brokerage houses and capital market infrastructure sectors.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $60 billion in assets under management as of 31 December 2011. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes.
KKR operates in India through KKR India Financial Services Pvt Ltd.
Source: Domain B