KKR to continue increasing investments in Asia, especially in India: Henry McVey

Regarding consumption growth, he notes that inflation has taken away real growth in income globally post-COVID, and India is no exception. India’s real wage growth and consumption have been adversely impacted by inflation, he adds.

Discussing key areas of India’s outperformance that make it a compelling geography for KKR, Henry shares that India’s equity market has outperformed all emerging markets, and economic growth has been more stable than in many global economies. He concludes, "India will be a net beneficiary."

Addressing KKR’s investment thesis, Henry emphasises their belief in India's long-term growth potential. Control deals in India, particularly in financial services, have attracted foreign investors like KKR. Henry notes that globally, KKR is focusing on key themes such as healthcare, data security, energy transmission, digitalisation, automation, and infrastructure.

Commenting on the global economy, Henry opines that the US economy is far better than the popular view, and there will be a turn in the interest rate cycle in the second half of 2024.

However, he cautions that Fed rate cuts may not be as many as the markets are expecting. Inflation may be more persistent than anticipated, impacting currencies. Some key factors on his radar for the year include positive cues like company buybacks, a thrust on artificial intelligence, and Japan emerging from deflation.

KKR boasts Assets Under Management of over $550 billion globally, with investments in India exceeding $10 billion. The firm focuses on sectors such as renewable energy, infrastructure, financial services, healthcare, education, and technology. KKR’s key India portfolio includes investments in companies like Reliance Retail, Highway Infrastructure Trust, Hero Future Energies, Lenskart, JB Chemicals, Serentica, Avendus, Five Star, IndiGrid, Jio, Livspace, among others.