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Asset Owners

Abu Dhabi Investment Authority acquires minority stake in alternative credit business

The Abu Dhabi Investment Authority building in Abu Dhabi

Abu Dhabi Investment Authority acquired a minority stake in alternative credit business KKR India Financial Services, an ADIA spokesman said.

KKR India Financial Services focuses on providing financing to corporations and midsized enterprises with long-term capital needs in India. Over the past eight years, it has extended $4 billion in credit to Indian companies, a KIFS news release said.

"Becoming a shareholder in KIFS is also consistent with ADIA's approach of seeking principal investments in market-leading businesses alongside strong and high-quality partners," said Hamad Shahwan Al Dhaheri, executive director of the private equities department at ADIA, in the news release.

"India is one of the world's fastest growing and most dynamic markets, and Indian businesses are increasingly seeking alternative credit solutions. KIFS has played an integral role in the development of this important form of financing in India and, through our investment in the company, we look forward to supporting the continued evolution of the market," Mr. Al Dhaheri added in the news release.

B.V. Krishnan, CEO of KIFS added in the release: "India continues to be an underserved financial services market, with shallow capital markets and an overreliance on banks for wholesale financing."

ADIA has about $828 billion in assets. The spokesman declined to provide more details on the value of the transaction or size of the stake acquired.