KKR has established a non-banking financial company (NBFC) that will provide structured credit solutions to the real estate sector in India, with an investment from GIC, Singapore’s sovereign wealth fund.

 

“The launch of the India-focused NBFC marks a milestone for our global real estate platform, and we are thrilled to bring long-term capital to India’s real estate sector,” said Ralph Rosenberg, global head of KKR Real Estate. “We are excited to assist a sector that is still under-built. While many lenders provide debt to this sector, there is a need for solution-oriented, non-dilutive capital for property developers. We intend to fill that gap and contribute to the continued development of India’s residential and commercial real estate sectors.”

 

This is KKR’s second NBFC in India. Since 2009, KKR has extended more than US$2 billion of structured financing to 21 business groups in India through its credit and capital markets business.

 

“This sector-focused NBFC further enables KKR to provide tailored financing solutions to companies, and adds to our established private equity and lending businesses in India,” said Sanjay Nayar, CEO of KKR India. “We aim to provide companies with value beyond capital alone in a way that is best suited to their needs. This real estate NBFC is our newest platform to achieve our goal in supporting good management teams to help their companies grow.”

 

During 2014, KKR initiated the real estate business in India by structuring and participating in three transactions with an aggregate amount of about US$190 million.

 

In private equity, KKR has been active in India since 2006, with total equity investments exceeding US$1.5 billion.