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KKR plots €5B Europe fund

After already closing major vehicles this year focused on North America and Asia, KKR is continuing into another geography.

KKR plans to raise up to €5 billion for a new flagship Europe fund in 2018, according to a Financial Times report. It would mark the New York-based firm’s first fundraising foray across the pond since closing its KKR European Fund IV on some €3.3 billion in late 2015. Almost two years later, that vehicle ranks fourth out of 12 funds in its peer benchmark, according to the PitchBook Platform.

Keeping in mind that a little more than half of KKR’s latest Europe fund is still waiting to be deployed and most of the investments it’s made are still active, here’s a closer look at how the vehicle has fared so far:

The firm’s latest Europe fund is reportedly expected to continue its predecessor’s strategy of investing between €200 million and €1 billion in European portfolio companies. With offices in Paris, Madrid, London, Luxembourg and Dublin, the PE behemoth has never been shy about operating in Europe. In fact, since the start of 2008, about 34.5% of KKR’s PE deals have occurred in Europe, according to PitchBook data, compared to 45.1% completed in the US. Asia, meanwhile, has been home to 11.8% of the firm’s deals in the past decade.

While KKR has had a banner year in 2017 for dealmaking, that trend hasn’t carried over to Europe. After completing 44 deals in the region last year, a new high, the firm’s rate of European deals is on pace to drop this year:

KKR’s new Europe fund is the latest sign of the global nature of the firm’s fundraising. In March, it closed its KKR Americas XII Fund on $13.9 billion, and in June, the firm closed its Asia Fund III on $9.3 billion.

PitchBook subscribers can view the full slate of KKR’s European transactions.

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    Written by Adam Lewis
    Adam Lewis was a financial writer covering private equity for PitchBook. He covered dealmaking, company and investor news for the PitchBook newsletter and blogs about the intersection of private equity and politics. A graduate of the WSU’s Edward R. Murrow College of Communication, Adam was previously a sportswriter covering the Mariners and Seahawks.
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