KKR to refund $350m to investors over underperforming Asia fund
- ByStartupStory | November 11, 2025
KKR & Co., the global alternative asset manager, has announced it will refund approximately $350 million in previously paid carried interest to investors in its second Asia buyout fund due to the fund’s underperformance. The fund, which closed in 2013 with $6 billion in capital, has experienced financial challenges, including its portfolio company Marelli filing for Chapter 11 bankruptcy protection.
KKR’s Chief Financial Officer, Rob Lewin, stated that the refund corresponds to a clawback provision, meaning the firm must return performance fees collected when the fund did not ultimately meet the required performance benchmarks. This charge will be recorded in the fourth quarter of 2025, impacting the company’s distributable earnings and incentive income per share for the quarter.
Despite this setback, KKR highlighted that its broader Asia private equity business remains strong, with subsequent Asia funds performing well and delivering top-quartile returns. The refund is a rare admission of setbacks by a top-tier fund manager but reflects KKR’s commitment to its investors.
The news triggered a drop in KKR’s shares by as much as 6% initially, although the company’s overall quarterly earnings exceeded expectations. KKR remains optimistic about Asia’s long-term growth prospects, citing favorable market conditions across countries such as Japan, India, Southeast Asia, and Australia.
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