Global Investor KKR’s Indian NBFC Secures Investment from Abu Dhabi Investment Authority
“India continues to be an underserved financial services market, with shallow capital markets and an over reliance on banks…[this] investment in KIFS gives us a high caliber partner to work alongside as we further scale our platform and deliver creative solutions in the market.”
Global investment firm KKR today announced that an entity ultimately wholly-owned by the Abu Dhabi investment Authority (ADIA) for ADIA has become a significant minority shareholder in KKR India Financial Services (“KIFS”), an alternative credit business in India. KIFS leverages its balance sheet and KKR’s investment expertise to extend bespoke financing solutions to corporations and mid-sized enterprises with long term capital needs across the country.
BV Krishnan, member at KKR and CEO of KIFS, said, “India continues to be an underserved financial services market, with shallow capital markets and an over reliance on banks for wholesale financing. KIFS has consistently provided flexible credit financing solutions to companies and shareholders, keeping in mind their long term objectives for their business. ADIA’s investment in KIFS gives us a high caliber partner to work alongside as we further scale our platform and deliver creative solutions in the market.”
Hamad Shahwan Al Dhaheri, executive director of the Private Equities Department at ADIA, said, “India is one of the world’s fastest growing and most dynamic markets, and Indian businesses are increasingly seeking alternative credit solutions. KIFS has played an integral role in the development of this important form of financing in India and, through our investment in the company, we look forward to supporting the continued evolution of the market. Becoming a shareholder in KIFS is also consistent with ADIA’s approach of seeking principal investments in market-leading businesses alongside strong and high quality partners.”
KIFS has established a market-leading position in India’s structured credit space, having extended approximately $4 billion of financing to companies over the past eight years. KIFS’ business combines KKR track record and expertise in credit, capital markets and asset management to originate and execute on differentiated transactions across industries and sectors. In 2017, KIFS further enhanced its focus on mid market opportunities to provide a wider range of companies with the necessary financing for the success of their long term business.
Further details of the transaction are not disclosed.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit and, through its strategic manager partnerships and hedge funds. KKR invests its own capital alongside its partners' capital and provides financing solutions and investment opportunities through its capital markets business.