KKR & Co has raised US$9.3 billion for its third Asia fund, amassing the biggest ever pool by a private equity firm in the region, as the company steps up investments in Japan.
About US$800 million of the pool comes from the firm’s balance sheet and employees, the company said in a statement yesterday.
The fund is 55 percent larger than its second Asia fund, which had generated a net internal rate of return of 20.6 percent as of March 31, the New York-based firm said in the statement.
The pool of money was amassed even as the number of megadeals — transactions larger than US$1 billion — dropped in the region last year and total investment declined by 26 percent, according to Bain & Co data.
Still, one bright spot has been Japan, where more companies are targeting overseas acquisitions and selling non-core assets.
More than half of KKR’s US$4.7 billion in transactions in the region so far this year were in Japan, data compiled by Bloomberg showed.
“We see a diverse set of opportunities across [the] Asia-Pacific [region] stemming from rising consumption and urbanization trends in key markets as well as larger carve-out and cross-border transactions in countries such as Japan,” KKR head of Asia private equity Ming Lu (路明) said in the statement.
KKR bought control of Hitachi Kokusai Electric Inc in a US$2.3 billion deal in April, three months after the private equity firm purchased Hitachi Koki Co for US$1.3 billion.
In November last year, the US fund acquired Calsonic Kansei Corp for US$4.5 billion from Nissan Motor Co, as Japan’s second-biggest automaker looks to spin off less important businesses to focus on electric vehicles and self-driving cars.
With the latest fund, KKR’s private equity business has US$68 billion in assets worldwide. KKR raised US$4 billion for its first Pan-Asian fund in 2007 and US$6 billion for a follow-on pool in 2013.
The firm started raising its third fund amid the departures of two of its most senior China executives, David Liu (劉海峰) and Julian Wolhardt, who have been investing in the country for two decades and were behind some of the firm’s most successful investments in the region.
While the Greater China area represents close to half the total Asia-Pacific market, valuations reached record levels last year amid ample capital chasing deals, Bain & Co said.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
ROW: A probe would determine if the rights of shareholders who were not allowed to vote yesterday had been violated, while the stock exchange also wants answers The election of board directors yesterday at Tatung Co (大同) sparked controversy after the company blocked some institutional and individual shareholders from participating in the general shareholders’ meeting, prompting the Financial Supervisory Commission (FSC) to announce that the vote would be investigated. Lin Kuo Wen-yen (林郭文艷) was re-elected as chairwoman of the household-appliance maker’s nine-member board, but prior to the vote she announced that several shareholders would not have voting rights. They were being denied a vote because they had contravened the Business Mergers and Acquisitions Act (企業併購法), and the Act Governing Relations Between the People of the Taiwan Area and