KKR & Co Inc closes its largest ever European buyout fund at $8 billion

The fund would focus on investments in Western European developed economies, the company said

In a time of market uncertainty and waning interest in huge acquisitions, KKR & Co. Inc. announced on Tuesday that it had closed its sixth and largest European private equity fund at $8.0 billion, the Economic Times reported.

According to the report, the fund would focus on investments in Western European developed economies. It also stated that Debevoise & Plimpton, a US law firm, served as principal counsel for KKR during the fundraising.

Because loan financing for international mergers and acquisitions (M&A) dried up due to rising interest rates, soaring inflation, and concerns about a global recession, private equity companies have been obliged to write larger equity checks for their deals.

 

KKR pledged $1 billion from its balance sheet and employee commitments of the funds raised from investors.

The company claimed that it is currently overseeing assets worth little over $28 billion on its European private equity platform.

"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, partner at KKR, said in a statement.