Key Takeaways
- • KKR cofounder Henry Kravis said the firm could deploy $20 billion in India over the next decade, according to an interview with The Economic Times, building on roughly $13 billion deployed in India over the past 20 years, about $9 billion of it in the last five years.
- • KKR, managing $744 billion in AUM, is expanding its India franchise across infrastructure and private credit, with Kravis highlighting private credit as a source of capital for small and medium-sized enterprises.
- • KKR financed the Manipal Group with $600 million, its largest credit investment in India, which Kravis cited as evidence of the strategy's momentum.
- • Kravis tied India's growth to corporate bond market development, arguing that financing gaps for SMEs are the key constraint on job creation.
Summary
KKR could deploy $20 billion in India over the next decade, according to cofounder Henry Kravis, who made the remarks in an interview with The Economic Times. "Going by our commitment to India, I won't be surprised if we deploy $20 billion in the next decade," Kravis said. He added that the quality of Indian companies is "starting to be as good as many companies in the US, which has had the benefit of time."
According to the report, KKR, founded in 1976 and managing $744 billion in assets under management, has deployed more than $13 billion in India over the last 20 years, with about $9 billion committed in the last five years alone. Japan and India are described as two of the largest markets outside the United States for the firm. The publication notes that the Indian economy is expected to double every seven years, which the firm's leadership believes will expand the role of private equity and KKR's franchise in the capital structure of entrepreneurs and founders.
KKR has broadened its India activity beyond its legacy private equity business, doubling down on infrastructure and relaunching its private credit business in the country. Gaurav Trehan, co-head of KKR in Asia Pacific, said the firm is "getting more and more active, investing more, and getting deeper across strategies within India." Last June, KKR provided $600 million in financing to the Manipal Group, its largest credit investment in India, to support corporate expansion.
Kravis, 82, is particularly positive on private credit in India, citing a bankruptcy framework that is "evolving and becoming more robust every year." He said India is moving from a bank-dominated market toward a broader and deeper corporate bond market, which he considers essential for growth and for the goal of creating 20 million jobs annually. He identified the lack of financing for small and medium-sized companies as the principal constraint, stating that banks are less active in that segment and that private credit can help fill the gap.
Kravis was in India to mark KKR's 50th anniversary, meeting Prime Minister Narendra Modi and young entrepreneurs during the visit.
According to the report, KKR, founded in 1976 and managing $744 billion in assets under management, has deployed more than $13 billion in India over the last 20 years, with about $9 billion committed in the last five years alone. Japan and India are described as two of the largest markets outside the United States for the firm. The publication notes that the Indian economy is expected to double every seven years, which the firm's leadership believes will expand the role of private equity and KKR's franchise in the capital structure of entrepreneurs and founders.
KKR has broadened its India activity beyond its legacy private equity business, doubling down on infrastructure and relaunching its private credit business in the country. Gaurav Trehan, co-head of KKR in Asia Pacific, said the firm is "getting more and more active, investing more, and getting deeper across strategies within India." Last June, KKR provided $600 million in financing to the Manipal Group, its largest credit investment in India, to support corporate expansion.
Kravis, 82, is particularly positive on private credit in India, citing a bankruptcy framework that is "evolving and becoming more robust every year." He said India is moving from a bank-dominated market toward a broader and deeper corporate bond market, which he considers essential for growth and for the goal of creating 20 million jobs annually. He identified the lack of financing for small and medium-sized companies as the principal constraint, stating that banks are less active in that segment and that private credit can help fill the gap.
Kravis was in India to mark KKR's 50th anniversary, meeting Prime Minister Narendra Modi and young entrepreneurs during the visit.
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