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How KKR's credit risks came crashing down


How KKR’s credit risks came crashing down
The credit unit’s then CEO Sanjay Nayar (now KKR India’s chairman) saw big potential in structured corporate loans, which tend to offer higher interest rates than traditional bank loans but come with fewer creditor protections.
(Photo: Mint)Premium
Anto Antony,
, Bloomberg
A global investment behemoth’s sprint from boom to bust is a cautionary tale about India’s shadow-lending sector.
With a growing number of foreign money managers looking for opportunities to sift through the wreckage of India’s debt markets, the story behind KKR’s troubled bet illustrates what can go wrong ....

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How KKR's big bet on India credit became a cautionary tale for investors


Few asset managers have enjoyed more success in the riskier corners of credit than KKR & Co.
But after a decade-long attempt to wring big returns from India, the Wall Street titan has become a cautionary tale for investors in one of the world’s most tantalising emerging markets.
Rocked by the shadow-banking crisis that began rippling through India’s financial system 2 1/2 years ago, KKR’s local credit unit lost Rs 1,516 crore ($207 million) in the final nine months of 2019, wiping out nearly 40 per cent of its capital. While the unit posted a small profit last year as India’s central bank pumped record amounts of cash into the Covid-battered economy, KKR is now in the process of merging the business with a competitor. ....

New York , United States , Abu Dhabi , Abuz Aby , United Arab Emirates , Sanjay Nayar , Kapil Singhal , Analjit Singh , Henry Mcvey , Amit Goenka , Gautam Thapar , Brian Dillard , Anshu Jain , Scott Nuttall , Arun Kejriwal , Henry Kravis , Goldman Sachs Group Inc , Franklin Templeton , Nisus Finance Services Co , Abu Dhabi Investment Authority , Citigroup Inc , Incred Financial Services Ltd , Cg Power Industrial Solutions Ltd , Resonance Eduventures Ltd , India Financial Services , India Financial Services Ltd ,

How financial giant KKR's big bet on lending in India went from boom to bust


How financial giant KKR’s big bet on lending in India went from boom to bust
It has been a steep fall from grace for US financial giant KKR which extended about $800 mn of loans at its peak and was set to launch an India IPO.
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Mumbai: Few asset managers have enjoyed more success in the riskier corners of credit than KKR & Co.
But after a decade-long attempt to wring big returns from India, the Wall Street titan has become a cautionary tale for investors in one of the world’s most tantalizing emerging markets.
Rocked by the shadow-banking crisis that began rippling through India’s financial system 2 1/2 years ago, KKR’s local credit unit lost 15.16 billion rupees ($207 million) in the final nine months of 2019, wiping out nearly 40% of its capital. While the unit posted a small profit last year as India’s central bank pumped record amounts of cash into the Covid-battered economy, KKR is now in the process of merging the business ....

New York , United States , Abu Dhabi , Abuz Aby , United Arab Emirates , Sanjay Nayar , Kapil Singhal , Analjit Singh , Henry Mcvey , Amit Goenka , Jal Jeevan , Gautam Thapar , Brian Dillard , Anshu Jain , Scott Nuttall , Arun Kejriwal , Henry Kravis , Goldman Sachs Group Inc , Franklin Templeton , Nisus Finance Services Co , Abu Dhabi Investment Authority , Citigroup Inc , Incred Financial Services Ltd , Cg Power Industrial Solutions Ltd , Resonance Eduventures Ltd , India Financial Services ,

kkr: KKR's big bet on India credit turned from windfall to wipeout


Synopsis
Rocked by the shadow-banking crisis that began rippling through India’s financial system 2 1/2 years ago, KKR’s local credit unit lost 15.16 billion rupees ($207 million) in the final nine months of 2019, wiping out nearly 40 per cent of its capital.
Agencies
When viewed in the context of KKR’s global business the firm oversees $234 billion worldwide, including about $75 billion in credit investments the losses suffered by the India unit are modest.
Few asset managers have enjoyed more success in the riskier corners of credit than KKR & Co.
But after a decade-long attempt to wring big returns from India, the Wall Street titan has become a cautionary tale for investors in one of the world’s most tantalizing emerging markets. ....

New York , United States , Abu Dhabi , Abuz Aby , United Arab Emirates , Sanjay Nayar , Kapil Singhal , Analjit Singh , Henry Mcvey , Amit Goenka , Gautam Thapar , Brian Dillard , Scott Nuttall , Henry Kravis , Cg Power Industrial Solutions Ltd , Resonance Eduventures Ltd , Goldman Sachs Group Inc , Franklin Templeton , India Financial Services , Nisus Finance Services Co , Abu Dhabi Investment Authority , India Financial Services Ltd , Infrastructure Leasing Financial Services Ltd , Ministry Of Corporate Affairs , Avantha Group , Max Group ,