KKR-backed The Executive Centre targets $500m financing to fund expansion
Flexible workspace operator The Executive Centre is seeking to raise around $500m in new debt as it looks to refinance existing borrowings and finance further expansion, according to a report by Bloomberg citing unnamed people familiar with the matter.
The Hong Kong-based company, which was acquired in 2021 by a consortium led by KKR and Tiga Investments, has approached both banks and private credit providers about the proposed financing, the people said. Discussions are at an early stage and the final structure and terms could change.
The financing could take the form of a unitranche facility, potentially giving private credit lenders an opportunity to provide a sizeable debt package to a private equity-backed business operating in Asia’s expanding flexible office market.
The Executive Centre reportedly did not immediately respond to requests for comment, while KKR declined to comment.
Around $280m of the proceeds is expected to be used to refinance existing debt, with the remaining capital earmarked for acquisitions of additional office space, according to the people familiar with the plans.
The proposed financing comes against a challenging backdrop for Asia’s leveraged loan market, where tight pricing and heightened geopolitical uncertainty have weighed on new issuance. At the same time, demand for flexible workspace across the region continues to grow as companies maintain hybrid working arrangements and seek greater flexibility over their office footprints.
Asia Pacific’s coworking office market is projected to increase from $16.1bn in 2026 to $28.8bn by 2031, representing a compound annual growth rate of 12.3%, according to research from Mordor Intelligence.
The Executive Centre operates flexible office and workspace facilities across Greater China, South and Southeast Asia, North Asia, the Middle East and Australia.
For KKR, the proposed financing would provide additional capital to a portfolio company as it seeks to expand its footprint, while potentially demonstrating the continued role of private credit in financing sponsor-backed businesses across Asia.