KKR upbeat on India, sees big potential in private credit

MUMBAI: US-based private equity major KKR & Co prefers credit market in India to equities, given the solid macro environment, which is being supported by Prime Minister Narendra Modi's policies.

KKR sees “great potential“ in private credit in India, a region where it created a differentiated credit model and invested close to $3.5 billion through structured financing to promoters and businesses. “In terms of performance, emerging market equities may finally be bottoming, India private credit still offers great potential and KKR has adopted the concept of buying complexity and selling simplicity,“ said Henry McVey, head of global macro & asset allocation at KKR.

The private equity fund runs an non-banking fi nance company and is in the process of raising a fresh fund of Rs 2,000 crore for structured credit operations. KKR is also in the process of setting up an asset reconstruction company to acquire debt-ridden companies and assets. Though globally considered as one of the top five private equity firms, KKR has just $1.2-billion exposure as a private equity investor in India while its debt exposure is near $3.5 billion.

KKR is the second largest global asset manager to come out with a positive note on India.