Demand for alternative credit grows
Global investment firm KKR has committed to invest an additional US$150 million in KKR India Financial Services (KIFS), KKR’s alternative credit business in India.
The new capital will bolster KIFS’ position in India’s structured credit space and will enable the Company to continue to partner with Indian borrowers with long-term capital needs.
Joe Bae and Scott Nuttall, Co-Presidents & Co-Chief Operating Officers of KKR, said, “Today is a unique time in the Indian credit markets, with many lenders unable to invest while the demand for alternative credit solutions continues to grow.
“This commitment demonstrates our ongoing support of the KIFS franchise and its future prospects. Moreover, it solidifies KIFS’ financial position, allows KIFS to be proactive in a dislocated market, and reflects our confidence in KIFS and its mission to finance India’s homegrown champions,” they said.
KIFS provides Indian businesses with financing solutions, as well as alternative asset management and capital market strategies, and is supported by a deep local presence and KKR’s international investment expertise.
KIFS has deployed more than US$5 billion of Indian credit investments over the past decade across more than 150 deals. The Company seeks to be an integral part of India’s financial system and to maintain long-term relationships with banks and mutual funds in India.
“Private lending in India is more important than ever. India has been an important part of KKR’s global growth strategy in Asia, and this investment reinforces KKR’s commitment to the region and provides KIFS with additional resources to enable the continued success of its business,” Sanjay Nayar, CEO of KKR India & CEO of KIFS, said on 14 Jan 2020.
KKR will fund its commitment to KIFS through the Firm’s balance sheet. The proceeds of KKR’s investment will be used for general corporate purposes. KKR is the majority stockholder of KIFS.
It will continue to coordinate with KIFS’ existing investors to drive the Company’s results. KIFS currently has a CRISIL credit rating of “AA” (Stable) and is regulated by the Reserve Bank of India as a non-bank finance company. fiinews.com