KKR-backed The Executive Centre targets $500m financing to fund expansion

Flexible workspace company The Executive Centre is aiming to secure approximately $500 million in new debt financing, as reported by Bloomberg based on information from unnamed sources. The Hong Kong-based firm, which is owned by a group led by KKR and Tiga Investments, is exploring options with various banks and private credit providers for this financing.

The financing could come in the form of a unitranche facility, potentially allowing private credit lenders to provide a substantial debt package to a private equity-backed business in Asia's growing flexible office market.

Around $280 million of the funds are anticipated to be used for refinancing existing debt, while the remaining capital will be allocated to buying additional office space, according to sources familiar with the plans. The financing discussion is still in its early stages, and the final structure and terms may undergo changes. KKR and The Executive Centre have not immediately responded to requests for comment on the matter.

This proposed financing comes at a difficult time for Asia's leveraged loan market, which has faced tight pricing and increased geopolitical uncertainty, affecting new issuance. However, the demand for flexible workspace in the region remains strong as companies adapt to hybrid working arrangements and look to optimize their office footprints. Asia Pacific's coworking office market is expected to grow from $16.1 billion in 2026 to $28.8 billion by 2031, according to Mordor Intelligence research.

For KKR, the financing would provide additional capital to a portfolio company as it aims to expand its presence, potentially showcasing the ongoing importance of private credit in sponsoring businesses across Asia.