(Bloomberg) — KKR & Co . and Abu Dhabi National Wealth Fund Mubadala Investment Co. have jointly committed at least $1 billion to private lending in the Asia-Pacific region.
According to a statement on Monday, the deal will “strengthen Mubadala’s exposure in the fast-growing APAC credit market”, allowing KKR to expand its reach in the region.
Riding on an industry-wide slowdown, some alternative asset investors are rapidly building their presence in Asia, where bank lending has long been a mainstay.
A personal loan involves the business borrowing money directly from the fund, which often offers more contractual flexibility than borrowing from a bank or even a shadow lender.
In the Asia-Pacific region, KKR said it has spent about $3 billion in loan capital since 2019.
The demand for private capital “many companies, sponsors and entrepreneurs face difficulties in accessing flexible financing due to the limited supply of capital from banks and non-bank lenders,” it said.
©2022 Bloomberg LP