KKR & Co (NYSE:KKR) Inc announced on Tuesday that it has successfully closed its sixth and largest European private equity fund, raising $8.0 billion. This is a significant boost for the investment firm, especially during a time of market volatility and waning interest in major acquisitions. The fund will focus on investments in developed economies in Western Europe, and KKR was represented by U.S. law firm Debevoise & Plimpton as its primary counsel during the fundraising process.
Private equity firms have been required to increase their equity checks for deals due to the drying up of debt financing for global mergers and acquisitions (M&A). This is in response to the rising interest rates, high inflation, and concerns about a recession in major economies.
Out of the money raised from investors, KKR committed $1 billion from its balance sheet and employee commitments. The company currently manages slightly over $28 billion in assets on its European private equity platform.
Alisa Amarosa Wood, a partner at KKR, stated in a press release, “Raising this fund in the current market environment demonstrates the strong investor confidence in our European team and platform, and our long track record of delivering value and outstanding results.”
