The company will invest $400m from its own balance sheet and as employees’ commitments
The US giant buyout group KKR has closed its €5.8bn flagship fund focused on transactions in western Europe.
European Fund V, launched in February 2018 with an initial €5bn target, is the largest war-chest KKR has raised specifically for deals in Europe, FN’s sister title Private Equity News previously reported.
KKR said it will invest $400m alongside investors from its balance sheet and as commitments from its employees.
The fund attracted more than 140 limited partners, with more than half from the Americas, according to a person familiar with it. The recent fundraising surpassed KKR’s fourth European vehicle, which closed at €3.4bn in 2015.
Johannes Huth, member and head of KKR in Emea, said: “KKR has been investing in Europe for over 20 years and our position has never been stronger. Europe’s complex dynamics create significant opportunities to deploy capital and continue delivering value and outperformance for our investors.”
The fund has already made several deals, which include the buyout of German payment company Heidelpay from AnaCap Financial Partners for more than €600m in August this year and a significant stake in the Nordic pension adviser and non-life insurance broker Soderberg & Partners in February.
Alisa Amarosa Wood, member and head of the private market products group at KKR, said “The significant demand we’ve seen from a wide range of institutional and private clients around the world is testament to the strong track record of our team and the confidence our investors have in KKR’s ability to continue to navigate the European market and deliver attractive returns.”
KKR’s Emea private equity platform is currently investing a combined $11.6bn. Since 2009, it has generated a 2.6x gross multiple and a 23.6% gross internal rate of return (IRR) for fully and partially realised transactions as of September 30, 2019.
The firm completed its first European investment in 1996 and raised its first dedicated European fund in 1999. In private equity, KKR has 46 investment professionals and 18 operating and capital markets professionals working across six European offices in London, Paris, Madrid, Frankfurt, Dublin and Luxembourg.
Source: Financial News