KKR likely to start India focused $1.5 bn fund

American fund house KKR is likely to start an India focused USD 1.5 billion fund to invest across listed and unlisted Indian companies.

Reports suggest that the fund would focus mainly on energy, power, infrastructure, auto components, brokerage houses and capital market infrastructure institution.

KKR’s fund may also look at facilitating buyout deals in India.

The America based firm is said to have already raised 25% capital for its India fund and is likely to close the fund by July-end.

Presently, KKR founder, Henry Kravis is in India to monitor the India fund. Kravis has also met with Indian firms for investment opportunities.

Henry Kravis, reportedly, will also meet L&T’s AM Naik, Reliance chief, Mukesh Ambani and GM Rao.

KKR founder, Henry Kravis said he doesn’t want KKR to be known as just a private equity firm. “KKR perception needs to change especially since it’s now listed,” he said.

KKR has exposure to various sectors and owns 60 companies. KKR also has exposure to oil & gas and infrastructure across the globe.

Kravis feels India lacks a vibrant debt market and that raising long-term debt was an issue in India.  He sees the need to open up the Insurance and the banking sectors.

India needs to allow more freedom into insurance and banks in the debt market, Kravis believes.  

“KKR has a long-term investment culture. Our job begins the day we buy a particular company. It’s not just about providing capital to companies. Our role is to bring efficiency in the company we acquire. We believe we are entering into a new transparent world.”

Source: Money Control