Oaktree, Carlyle and KKR Look to Expand in Emerging Markets

Oaktree, Carlyle and KKR Look to Expand in Emerging Markets
geralt / Pixabay

Emerging markets have been of interest to the new age of investors for some time now. A fresh round of capital is being directed into the different emerging economies of Asia, this time by Oaktree Capital Group LLC (NYSE:OAK), Carlyle Group LP (NASDAQ:CG) and KKR & Co. L.P. (NYSE:KKR).

Oaktree, Carlyle and KKR Look to Expand in Emerging Markets

Oaktree Capital Group LLC (NYSE:OAK), is kick-starting a new fund, which will be entirely dedicated to the distressed and dislocated debt in emerging markets, Bloomberg reports. The new fund, Oaktree Emerging Market Opportunities Fund LP will attempt to benefit from the large amount of corporate and sovereign credit spread across in EMs. Oaktree Capital Group LLC (NYSE:OAK) estimates the total amount of  outstanding debt in these regions to exceed $1 trillion. The fund is expected to report its first returns in the first quarter of FY2013. The fund details enlist an initial general partner investment of $20 million, the minimum size of the fund is expected to be $800 million. The terms indicate the charge of 1.75 percent annual management fee.

Carlson Capital Tells Investors: Twitter Still Has Tremendous Upside [Exclusive]

Black DiamondCarlson Capital's Double Black Diamond Fund returned 85 basis points net in August, bringing its year-to-date net return to 4.51%. According to a copy of the fund's September update, which ValueWalk has been able to review, its equity relative value and event-driven strategies outperformed during the month, contributing 131 basis points to overall P&L. Double Read More

In another development, Carlyle Group, one of the largest private equity firms globally, is buying a big chunk of an Indonesian telecom towers company, Reuters reports. The stake in PT Solusi Tunas Pratama TBK (STP) (SUPR.JK) amounts to 25 percent of the company, which equals a $100 million transaction. Indonesia is seen as an economy of high risk and high reward, and despite regulatory and structural problems, the market generates sizeable returns.

Carlyle Group LP (NASDAQ:CG) is mum about the details of the buyout. The company has been investing in Asia for a long time now, a multitude of its billion dollar funds are dedicated to investment in Asian economies. It previously took part in the auction of GarudaFood Group, an Indonesian food company. Carlyle Group LP (NASDAQ:CG) also competes with Blackstone Group L.P. (NYSE:BX), KKR & Co. L.P. (NYSE:KKR) and Bain Capital for dominance in Southeast Asian countries. The group manages over $150 billion in a variety of assets.

KKR & Co. L.P. (NYSE:KKR) is directing $1 billion over the span of five years into countries like, Thailand, Vietnam, and the Philipines. This new capital adds to the previous investment of more than $1 billion in the Southeast Asian region. KKR & Co. L.P. (NYSE:KKR) has also opened its office in Singapore, which will be overseen by Ming Lu, and will employ a seven member team. In Singapore, KKR has invested in MMI, a data storage company, Avago, a tech company, and Unisteel, a precision components maker.

Further opportunities are seen in the agriculture, financials, and consumer sectors. KKR & Co. L.P. (NYSE:KKR) held $61.5 billion in AUM by the end of the June quarter.


No posts to display