KKR, a leading investment firm, announced the closing of European Fund VI at $8 billion. It is KKR’s largest European Private Equity fund to date, following the $6.6 billion fund in 2019.
KKR said the fund will be focused on private equity investments primarily in the developed economies of Western Europe. KKR has been investing in Europe for 25 years. KKR has 100 professionals, including 57 European Private Equity executives, across eight European offices.
“We see potential for transformational investment behind structural trends that are reshaping the European economy, including digitalization, healthcare and sustainability,” Philipp Freise, Co-Head of KKR European Private Equity, said.
KKR will be making a significant commitment to the Fund, investing over $1 billion alongside investors from the firm’s balance sheet and employee commitments.
KKR’s European private equity platform, which is part of the firm’s $165 billion private equity business, is managing a combined $28.31 billion in assets under management. The portfolio includes investments in over 45 companies across Western Europe.
“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,” Alisa Amarosa Wood, Head of the Global Private Markets and Real Assets Strategies Group at KKR, said.
Private equity firms have been forced to write larger equity checks for their deals as debt financing for global mergers and acquisitions (M&A) dried up amid rising interest rates, high inflation and fears of a recession in major economies.