Korean PEF provides $100 mn funding for KKR’s US buyout

South Korea’s new private equity firm Tiger Alternative Investors has provided $100 million in debt funding for KKR’s $1.32 billion acquisition of Kentucky-based BrightSpring Health Services.

KKR closed the acquisition in March, using its Americas XII Fund, and merged the health services provider with its portfolio company PhaMerica Corp. An affiliate of Walgreens Boots Alliance, Inc. participated in the buyout as a minority investor.

The mezzanine debt is expected to generate annual returns of around 9%, according to investment banking sources on June 12.

The size of the total debt funding for the buyout has yet to be disclosed.

Tiger Alternative, founded in 2018, attracted Korean investors for the debt investment through a fund launched by brokerage firm Mirae Asset Daewoo Co. Ltd.

Last year the Seoul-based private equity house invested $35 million in a collateralized loan obligation fund of the Carlyle Group.

Earlier this year it invested about 500 billion won ($423 million) to acquire three logistics centers in Germany leased to automotive companies BMW and Daimler AG and German retailer Otto, jointly with Hana Financial Investment Co. Ltd.

In the US, it had acquired six logistics facilities for 500 billion won, teaming up with US REIT manager VEREIT.

Tiger Alternative was set up by former employees of Hana Alternative Asset Management Co. Ltd. It has around 1.2 trillion won in assets under management.

By Hyunil Lee

hiuneal@hankyung.com