KKR, a leading global investment firm, today announced the final closing
of KKR Global Infrastructure Investors III (the “Fund”), a $7.4 billion
fund focused on pursuing global infrastructure investment opportunities
with an emphasis on investments in OECD countries. KKR will be investing
$358 million in capital alongside external investors through KKR’s
balance sheet and employee commitments.
“The current scale of global infrastructure investment demand is simply
enormous, and is only growing, with the need outstripping capital
available,” said Raj Agrawal, KKR Member and Global Head of KKR’s
infrastructure business. “This dynamic, coupled with limited public
financing sources, has created a significant need for private capital to
provide infrastructure solutions. We believe our sector expertise and
global platform uniquely position us to help fill this funding gap and
we look forward to our continued growth in, and commitment to, the
infrastructure asset class.”
KKR has a risk-based, rather than a sector-based, approach to
infrastructure investing. Consistent with this approach, the Fund will
focus on critical infrastructure investments with low volatility and
strong downside protection where KKR believes it can leverage its global
value creation resources to tackle complexity in sourcing, structuring,
operations, and execution. By doing so, the Fund aims to deliver
attractive returns with a low risk profile from a portfolio that is
broadly diversified across a number of different infrastructure
sub-sectors, geographies and asset types. The Fund has a broad
investment mandate across infrastructure sectors, including but not
limited to: energy; transportation; water, wastewater and waste; social
infrastructure; and communications infrastructure. The Fund will also
focus its investment mandate on the OECD countries predominantly in
North America and Western Europe.
KKR first established a dedicated infrastructure team and strategy in
2008. Since then, the team has grown to consist of 25 experienced
investment professionals and has completed or announced 25
infrastructure transactions across a number of sub-sectors and
geographies. With the closing of the Fund, KKR’s infrastructure business
manages approximately $13 billion in assets under management. Recent
transactions by the Fund include Starlight, which owns a portfolio of
approximately 10,200 telecommunication towers across France, and
Discovery Midstream, the largest private natural gas gathering and
processing business in Colorado’s Denver-Julesburg Basin.
The Fund received strong backing from a diverse group of new and
existing global investors, including public pensions, sovereign wealth
funds, insurance companies, family offices, high net worth individual
investors and other institutional investors.
“Since first launching the Fund, we were thrilled to see the incredible
momentum we received from investors – both those who were early and
large supporters of our predecessor funds and also those who were
first-time investors with us as well as the asset class,” said Alisa
Amarosa Wood, KKR Member and Head of KKR’s Private Market Products
Group. “The enthusiasm we saw across all geographies and investor types
demonstrates the strong support for our infrastructure team, strategy
and investment performance to date. Additionally, we have seen
infrastructure as an asset class mature and grow in the way investors
allocate capital to the space. The support for our Fund also speaks to
this evolution of the asset class. We believe this continues to be
important as the need for infrastructure capital from an investment
perspective only grows.”
About KKR
KKR is a leading global investment firm that manages multiple
alternative asset classes, including private equity, energy,
infrastructure, real estate and credit, with strategic manager
partnerships that manage hedge funds. KKR aims to generate attractive
investment returns for its fund investors by following a patient and
disciplined investment approach, employing world-class people, and
driving growth and value creation with KKR portfolio companies. KKR
invests its own capital alongside the capital it manages for fund
investors and provides financing solutions and investment opportunities
through its capital markets business. References to KKR's investments
may include the activities of its sponsored funds. For additional
information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website
at www.kkr.com
and on Twitter @KKR_Co.
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