Private equity firm KKR & Co. is making some changes as two Chinese senior executives, namely David Liu and Julian Wolhardt, are set to leave the firm later this year to establish a new China-focused investment company, KKR revealed on Tuesday.

"David and Julian are among the savviest investors in China," Wu Shangzhi, chairman and founder of CDH Investments Fund Management Co., told Bloomberg. "They have very strong local networks and are highly respected by Chinese entrepreneurs because of their deep local insights and successful investments."

Like Us on Facebook

Following their departure, KKR would lose two of its most senior China executives who have played major roles in the company. Liu has spearheaded several investments in China such as appliance manufacturer Qingdao Haier Co., dairy product maker China Modern Dairy Holdings Ltd., and leasing firm Far East Horizon Ltd.

The move comes as KKR is set to raise capital for its third Asia fund, potentially at the end of this year, which is estimated to reach $7 billion, according to sources familiar with the matter. KKR's second Asia fund, which at $6 billion is the biggest raised for the region, has produced an annual net internal rate of return of 25 percent since it was launched in 2013, Bloomberg reported.

Meanwhile, KKR also announced five appointments in China, South Korea, and Singapore. It employed Ashish Shastry, formerly with TPG and then NorthStar, as the head of its Southeast Asia unit. It also hired three managing directors, namely, Zhen Ji from Citic Capital Holdings Ltd. for its China unit; Hyoung Seok Lim for Korea; and Rob Yang, who joined KKR early this summer, for its real estate business in the mainland.

KKR also named fellow co-head Ming Lu as sole head of its Asia private equity and the interim head of China, The Wall Street Journal reported. Joe Bae, the managing partner of KKR Asia, would remain at the helm of the firm. 

TagsKKR, David Liu, private equity firm, Julian Woldhardt