KKR Provides $600 Million in Debt Financing to Manipal Group

KKR has extended $600 million in debt funding to Manipal Group, making it the firm’s largest private credit investment in India so far. The deal was confirmed on Monday and structured by KKR Capital Markets. The funds are intended to support the Manipal Group’s general expansion plans and long-term requirements.

Context of the Transaction

The deal comes amid increased interest in private credit deals in India. With traditional bank lending remaining constrained for certain types of borrowers, global investors have been stepping in through private credit arrangements. These provide structured capital to both growing and distressed companies. Last week, the Shapoorji Pallonji Group raised $3.35 billion through a similar route by pledging a stake in Tata Sons.

Statements and Alignment

KKR and Manipal Group issued a joint statement confirming the transaction. The Group did not specify where the funds would be used. KKR noted that India is one of the key markets for its Asia credit business and that it plans to continue working with local companies.

Read more: KKR Expected to Sell Stake in JB Chemicals!

KKR’s Other Investment  

The capital comes from KKR’s Asia Pacific Credit strategy and insurance platform. The platform has been active since 2019 and has committed over $8 billion across approximately 60 credit transactions in the region. The total deal volume stands at more than $21 billion.

Details of the Manipal Group

Founded in 1953 by T.M.A. Pai, the Manipal Group operates across healthcare, education, and insurance. Its network includes Manipal Hospitals, in which the group holds a 40% stake. Manipal Hospitals is now the largest tertiary healthcare provider in India. Overall, the Group reaches more than 20 million people annually through its services.

Conclusion

The $600 million debt deal adds to a growing number of large-scale private credit transactions in India. It reflects a shift toward alternative lending sources in the country’s corporate funding environment, especially for capital-intensive sectors like healthcare and education.

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