When contacted, a KKR
spokesperson said: “We aren’t able to comment on fundraising plans or speculation.”
The source quoted earlier said that the fund manager is closely looking at the macro-economic situation and the liquidity scenario before raising the credit fund. “They want to see the risk-reward situation over the next 12-18 months before they raise any major fund,” said the source, adding, after the CG Power
episode, the firm has learnt that doing due diligence in listed companies
In September, KKR
acquired a 10 per cent stake in CG Power
by invoking the pledge on shares provided as collateral for credit facilities extended to entities related to promoter Gautam Thapar as the promoter group could not repay KKR. The CG Power
board removed Thapar as chairman of the company on August 30.
Café Coffee Day, another firm in which KKR had invested, has been selling assets to repay dues after the death of its promoter V G Siddhartha.
KKR also saw a couple of major changes in its key management personnel recently. B V Krishnan, chief executive officer (CEO) of its non-banking financial company KKR India Financial Services
quit, citing personal reasons.
Rating agency CRISIL recently cut the long-term debt instruments and bank facilities of KKR India Financial Services
to “AA/Stable” from “AA+/Stable”.
In a report dated October 1, the rating agency cited “deterioration in the standalone credit profile marked by expected pressure on asset quality and its consequent impact on the earnings profile and capitalisation metrics” for the downgrade.
Over the last three financial years, KKR India Finance’s loan book has grown at a CAGR (compound annual growth rate) of 35 per cent to Rs 5,694 crore, as on March 31, according to the CRISIL report. The loan book stood at nearly Rs 5,878 crore as on June 30, 2019.
KKR also runs an NBFC focused on real estate in the country where Singapore's GIC is a key investor.