Deals
KKR to Babson Swoop in to Fill Asian Lending Gap Left by Banks
- Record $5.5 billion raised by Asia-focused private debt funds
- Stricter financial regulation is constraining lending by banks
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KKR & Co. and Babson Capital Management LLC are looking to take advantage of a pullback in lending by banks in Asia, after funds active in the region raised a record amount from investors.
While traditional banks dominate the lending business in Asia and financing by firms that lend privately is still small, KKR, Babson and Adamas Asset Management HK Ltd. expect it will grow in 2016. Funds focused on the region raised an unprecedented $5.5 billion of fresh capital from investors in 2015, according to figures from data provider Preqin.