Newsletter Edition 78
Jul 31, 2025
KKR Raises $6.5B for Asset-Backed Finance Strategy Amid Surge in Private Credit Demand
Global investment firm KKR has raised $6.5 billion for its latest asset-backed finance (ABF) strategy, reinforcing its expanding position in private credit as investors and borrowers increasingly seek alternatives to traditional bank lending, according to a report by Reuters.
The raise includes $5.6 billion for KKR Asset-Based Finance Partners II, the firm’s second flagship ABF fund, along with $1 billion in separately managed accounts following a similar mandate.
The strategy focuses on non-bank lending backed by hard and cash-generative assets, including royalties, leases, mortgages, receivables, and other forms of collateralized income streams. As banks pull back from risk-weighted assets due to tightening regulatory capital requirements, KKR aims to fill the gap with flexible, private-market financing solutions.
“Our ABF platform offers borrowers access to capital anchored in real, predictable cash flows — an increasingly attractive proposition in today’s credit environment,” KKR said in a statement.
KKR’s total ABF platform now manages more than $74 billion in assets, a dramatic increase since the firm’s entry into the space in 2016. The growth reflects both the rising disintermediation of traditional lending and institutional investors' appetite for income-generating, asset-secured strategies in a high-rate, low-liquidity environment.
The fundraise attracted a diverse base of global investors, including pension funds, sovereign wealth funds, insurers, family offices, and asset managers, according to the firm.
KKR is among a cohort of global investment managers increasingly leaning into asset-based finance as part of the broader surge in private credit, a sector expected to top $2 trillion in AUM globally by 2027, according to industry forecasts.
https://www.privatedebtinvestor.com/kkr-raises-6-5bn-for-abf-fund-beating-target/
EQT to Acquire Fujitec in Landmark $2.7 Billion Take-Private Deal
EQT has agreed to acquire Fujitec, Japan’s largest independent elevator and escalator manufacturer, in a $2.7 billion take-private deal — the largest acquisition in Japan for the Stockholm-listed firm and the biggest private equity-led take-private transaction in Asia this year, according to Reuters.
The deal will be executed via BPEA Private Equity Fund IX, EQT’s latest Asia-focused buyout fund, which recently secured $11.4 billion in investor commitments. EQT plans to launch a tender offer at JPY5,700 per share, offering a notable premium. Upon completion, EQT will hold an 85% controlling stake, while the founding family of Fujitec will retain a 15% minority interest.
Founded in 1948 and headquartered in Shiga, Japan, Fujitec is the country’s only full-scope, independent elevator original equipment manufacturer (OEM), with operations in 24 international markets. EQT highlighted its intention to support Fujitec’s expansion efforts in Japan, India, North America, and Southeast Asia, while driving digital transformation and improving operational efficiency.
Despite the acquisition premium, Fujitec shares fell 9.5% in early Tokyo trading to JPY5,616, a decline analysts attribute to short-term technical movements rather than any concern over the deal’s fundamentals.
This transaction arrives amid a surge in M&A activity in Japan, with $232 billion in deals involving Japanese companies reported in the first half of 2025. The wave of activity is being fueled by corporate governance reforms and an increasing trend toward privatising listed subsidiaries, making Japan a hotbed for global private equity investment.
EQT’s presence in Japan dates back to 2006, when it opened its Tokyo office. The firm is rapidly expanding its local team and expects BPEA Fund IX to hit its $14.5 billion hard cap by 2026, positioning it as one of the largest Asia-focused buyout funds in the market.
EQT to Acquire HR Software Provider Neogov in $3 Billion Deal from Warburg Pincus and Carlyle
Private equity firm EQT has agreed to acquire Neogov, a U.S.-based human resources software company, in a transaction valued at over $3 billion including debt, according to Reuters, citing sources familiar with the matter.
The deal marks a full exit for Neogov’s existing private equity shareholders. Warburg Pincus will sell its majority stake, while Carlyle is divesting its roughly one-third ownership. A formal announcement of the deal is expected in the coming days.
Founded in 2000 and headquartered in El Segundo, California, Neogov provides cloud-based HR software specifically tailored to the public sector, serving government agencies and public institutions with tools for talent acquisition, performance management, and broader workforce administration.
Warburg Pincus first invested in Neogov in 2016, with Carlyle joining as a minority investor in 2021. Their exit comes amid signs of a rebound in the private equity deal market following a relatively slow second quarter impacted by macroeconomic volatility and geopolitical uncertainty.
For EQT, the acquisition reinforces its strategic focus on high-growth, mission-critical software companies with sticky, recurring revenue models. Neogov's niche in the public sector — where digital transformation demand remains strong — adds a defensive, stable-growth element to EQT’s expanding software portfolio.
The Neogov transaction also marks Warburg Pincus’ second major software exit in July, following its recent sale of cybersecurity firm A-lign to Hg, underscoring growing momentum in tech-focused private equity deals.