KKR has raised the majority of its $2.5bn second Asia private credit fund from new investors, as geopolitical decoupling pushes global institutions to diversify away from crowded US and European markets, according to sources cited by Bloomberg.

About 75% of commitments came from first-time investors to the strategy, including insurers, sovereign wealth funds, and pension plans, according to senior executives. Asia-based investors accounted for roughly 60% of the capital.

Diane Raposio, head of Asia credit and markets at KKR, said: “What we’re starting to see, with some of this geopolitics, is Asia maybe decoupling. We are seeing a premium versus US and Europe.”

KKR said Asia offers superior risk-adjusted returns, with lower leverage, stronger lender protections, and wider spreads. Senior loans typically carry a 50 to 100 basis-point premium, while junior debt offers a 300 to 500 basis-point premium compared with Western markets.

The firm has already committed $1.9bn across 10 investments from the second fund and related vehicles, targeting low double-digit net returns. Developed Asia is expected to account for about 70% of deployments, with Australia, Korea, Singapore, India, and Japan identified as key markets.

The strategy underscores private credit’s growing role in Asia as global investors seek yield and resilience amid rising geopolitical fragmentation.

If you think we missed any important news, please do not hesitate to contact us at [email protected].

Can`t stop reading? Read more.