KKR established its Logisteed logistics platform through Asia Fund IV
The Washington State Investment Board (WSIB) has committed up to $400 million to KKR Asian Fund V, according to an investment advisory published by the US pension fund on 18 June, backing an Asia-focused buyout vehicle which market sources describe as on course to become the largest such fund ever raised for the region.
The commitment is a continuation of a relationship between the Olympia, Washington-based institution and KKR, with market sources familiar with the fundraising for KKR Asian Fund V indicating that the vehicle is on track for more than $15.6 billion in equity.
“The WSIB and KKR have been investment partners since 1983. Since that time, the WSIB has committed a total of $12.5 billion across 28 KKR-sponsored partnerships, including $400 million to KKR Asian Fund I in 2007, $400 million to KKR Asian Fund II in 2013, $500 million to KKR Asian Fund III in 2017, and $500 million to KKR Asian Fund IV in 2020,” the WSIB said in announcing the commitment.
The buyout fund will focus on sectors including consumer, life sciences, financial services, healthcare and industrials, market sources told Mingtiandi, with Japan and India among its largest target locations. The vehicle’s scope includes 20 to 30 investments across Australia, Greater China, India, Japan, South Korea and Southeast Asia, according to the WSIB notice.
Biggest Asia Buyout Fund Ever
KKR registered the Luxembourg-domiciled fund on 9 October 2025 and began marketing it to investors the following month targeting $15 billion in commitments, Reuters reported in November, citing people familiar with the matter. Market sources familiar with the fundraising now expect the strategy to surpass the $15.6 billion raised by EQT for its BPEA IX vehicle in April — currently the largest Asia Pacific-dedicated private equity fund ever raised.
KKR head of Asia Pacific private equity Gaurav Trehan (Image: KKR)
KKR declined to comment on fundraising when contacted by Mingtiandi.
KKR’s third and fourth Asia buyout funds each achieved gross internal rates of return exceeding 20 percent, with the fourth fund having returned 40 percent of its capital to investors by end of September 2025, the firm said on its fourth-quarter 2025 earnings call.
WSIB, which manages approximately $196 billion in assets on behalf of Washington state beneficiaries, has backed every vintage of the KKR Asia buyout series since its inception.
While WSIB has invested a total of $12.5 billion across 28 KKR-sponsored vehicles over the 43-year partnership, the $400 million commitment to this latest edition of the buyout fund represents a step down from the $500 million each the board put into KKR Asian Fund III and KKR Asian Fund IV.
The Fund V commitment was approved as a staff-delegated investment under WSIB’s previously approved 2026 private equity annual plan and remains subject to final due diligence and negotiation of terms.
Two Decades of WSIB Commitments to KKR Asia Buyout Strategy
| Vehicle | Final Close | Fund Size | WSIB Commitment |
|---|---|---|---|
| KKR Asian Fund I LP | 2007 | $4.0B | $400M |
| KKR Asian Fund II LP | July 2013 | $6.0B | $400M |
| KKR Asian Fund III LP | June 2017 | $9.3B | $500M |
| KKR Asian Fund IV SCSp | April 2021 | $15.0B | $500M |
| KKR Asian Fund V SCSp | Not yet closed | Target $15B+ | Up to $400M |
Sources: KKR press releases (fund closing dates and sizes); Washington State Investment Board investment advisory, 18 June 2026 (WSIB commitment amounts)
Seiyu Bonanza
Under its KKR Asian Fund IV, KKR in 2021 teamed up with Japanese tech conglomerate Rakuten to acquire an 85 percent stake in retailer Seiyu from Walmart in a deal that valued the chain at JPY 172.5 billion.
In March KKR agreed to sell Seiyu to discount retailer Trial Holdings for JPY 380 billion ($2.56 billion), generating a return of approximately eight times its invested capital.
In 2023 KKR acquired Hitachi Transport System from the Japanese conglomerate for JPY 670 billion, repositioning the company as logistics operator Logisteed. In October it sold a 19.9 percent stake in the company to Japan Post Holdings for JPY 142.3 billion ($944 million), valuing the platform — which operates 9.2 million square metres of warehouse space globally — at over JPY 715 billion.
The momentum for KKR Asian Fund V comes after Blackstone reached a $13.1 billion final close for its third Asia private equity fund in June, exceeding its $10 billion target, while Bain Capital closed its sixth Asia vehicle at $10.5 billion in May, surpassing its $7 billion goal.
KKR has also been expanding its other strategies in Asia, with its Asia Pacific Infrastructure Investors III targeting between $7 billion and $9 billion for investment in data centres, utilities and transport. The firm closed on $2.5 billion for its Asia Credit Opportunities Fund II private credit vehicle in January.