Kohlberg Kravis Roberts & Co. (KKR), a global private equity fund, has made two investments in India in 2009 that includes a follow-on investment in Aricent Inc, a niche technology services company it acquired in 2006, and structured investment in Max India group. With $4 billion of assets in Asia Fund, KKR has so far invested $1.6 billion and are actively looking for private equity opportunities across Asia, including India.
Sanjay Nayar, CEO and country head of KKR told Business Standard that the fund had tried to be proactive and remain very close to its clients discussing capital solutions in year 2009, and would continue that in 2010 as well. “We believe that at these times, asset management firms with broad platforms, with flexible pools of capital, and those that are closest to their clients will continue to outperform,” Nayar is quoted in the report.
Elaborating KKR’s investment strategy forward, he stated that KKR will continue to be long-term patient investors, and focus on efficiently-built distribution businesses, niche services, and infrastructure-related businesses, as it builds on the country’s inherent strengths and satisfy critical gaps. “From a product perspective, we also see a role for well structured mezzanine capital, which can help address growth capital requirements, keeping in mind the business risks associated with the stage of growth,” added Nayar.
KKR is understood to be working on developing a broad-based asset management and financial services platform that can play a relevant role in India’s economic development. It plans to work with new generation entrepreneurs to provide long-term strategic capital to help them build world-class businesses and achieve their local and global aspirations.
Two prior investments of KKR in India include $250 million investment in Bharti Infratel Ltd in 2008, and a $900 million investment in the software unit of Flextronics International Ltd in 2006, when it acquired the firm.