KKR Asia Credit
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Dynamic Market EvolutionAs structural shifts continue, APAC has emerged as a key growth region, currently contributing ~60% 1 to global GDP growth. Despite this, only 3% of assets in the region are allocated to credit, compared to 28% in Europe 2 . This creates a ~$700 billion growth opportunity for investors 3 .
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Why Now?Across the APAC region, demand for credit significantly exceeds supply, particularly for flexible capital solutions, with over 80% 4 of financing still reliant on bank capital. This imbalance, combined with the expanding $3 trillion life insurance and annuities market 5 , creates strong tailwinds for credit investors seeking to capitalize on these opportunities.
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Relative Value & Origination SynergiesWe believe the supply/demand dynamic also drives a risk-reward premium for credit investments in the APAC region. Our global credit expertise, combined with cross-business collaboration, allows us to identify this relative value and lean in to deliver optimal and customized solutions. With full ownership of Global Atlantic, we have created a virtuous origination cycle that enhances value across our investments.
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Deep Regional ExpertiseWith over 20 years of building strong relationships in APAC, KKR's deep local expertise and extensive network puts us in a unique position to identify and execute on high-value investment opportunities. With 570 professionals across nine offices, we are the largest and most diversified alternative asset manager in APAC, uniquely positioned to navigate and capitalize on the region's diverse markets. 6
1
Ref Data as of November 20, 2023. KKR GMAA estimates for US, Euro Area, China, IMF estimates for other Asia Pacific countries, nominal GDP weighted. Source: Haver, IMF, KKR GMAA analysis.
2
Ref Source: Preqin as of December 31, 2023 and KKR Credit Analysis
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3
Ref Source: Preqin as of December 31, 2023 and KKR Credit Analysis
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4
Ref Source: Bank of International Settlements as of December 31, 2023.
5
Ref Source: Size of L&A Reserves: US: Represents total general account reserves of U.S. life insurers as of YE 2023, sourced via S&P Market Intelligence. Japan: Life and Annuities Market as of YE 2022, sourced via Life Insurance Association of Japan.
6
Ref Source: KKR Investor Presentation (slide 177), refer to https://ir.kkr.com/