Mumbai: Global private equity firm Kohlberg Kravis Roberts and Co. LP (KKR) on Thursday said it has established a non-banking financial company (NBFC) in India along with GIC Pvt. Ltd, Singapore’s sovereign wealth fund. The NBFC will provide structured credit solutions to the real estate sector in the country.
This is KKR’s second NBFC in India. Since 2009, KKR has extended more than $2 billion of structured financing to 21 business groups in India through its credit and capital markets business.
“The launch of the India-focused NBFC marks a milestone for our global real estate platform, and we are thrilled to bring long-term capital to India’s real estate sector,” said Ralph Rosenberg, global head of KKR’s real estate platform.
“We are excited to assist a sector that is still under-built. While many lenders provide debt to this sector, there is a need for solution-oriented, non-dilutive capital for property developers. We intend to fill that gap and contribute to the continued development of India’s residential and commercial real estate sectors.”
“This sector-focused NBFC further enables KKR to provide tailored financing solutions to companies, and adds to our established private equity and lending businesses in India,” said Sanjay Nayar, chief executive officer of KKR India.
“We aim to provide companies with value beyond capital alone in a way that is best suited to their needs. This real estate NBFC is our newest platform to achieve our goal in supporting good management teams to help their companies grow.”
During 2014, KKR initiated the real estate business in India by structuring and participating in three transactions with an aggregate amount of approximately $190 million.
In private equity, KKR has been active in India since 2006, with its 0total equity investments exceeding $1.5 billion.
Since launching a dedicated real estate platform in 2011, KKR has committed over $1.8 billion of equity to 29 real estate transactions in the US, Europe and Asia.