Global alternative asset management firm Kohlberg Kravis Roberts & Co. (KKR) has identified investing in infrastructure and managing resource constraints among the top challenges for its portfolio companies.
In its annual Environmental, Social, Governance (ESG) and Citizenship report, the New York-headquartered firm has listed six challenges, which also include climate change, supporting better agriculture, treating and preventing disease, and focusing on employees.
KKR said it is committed to meeting critical infrastructure demands, having invested about $7.7 billion in numerous infrastructure projects since 2011.
"Continued progress and growth depends on maintaining, developing, and fortifying infrastructure,
from highways to water systems to housing," stated the report. "This need presents vast opportunity for innovative partnerships and private capital to fund such infrastructure improvements."
As of December 2017, KKR’s assets under management stood at $168.5 billion. It has presence in multiple asset strategies including private equity, real estate, energy and infrastructure, and credit.
Discussing how it has adapted to climate change, KKR said about 12 companies across its private equity and real estate portfolio had worked with a professional engineer hired by KKR Capstone in last year to develop recommendations for energy and water efficiency projects.
KKR also works alongside agriculture-related portfolio companies to adopt enhanced production practices and mitigate environmental risks.
KKR said that since 2008, it has invested more than $4.6 billion in sustainable solutions-oriented themes including industrial and infrastructure solutions, environmental management, next generation energy and learning resources and workforce development.
“Our understanding of how ESG issues can drive value helps us invest responsibly while also producing better outcomes for our clients, companies and communities,” said Elizabeth Seeger, director of sustainable investing at KKR.
On the healthcare front, KKR had closed its first fund dedicated to healthcare growth equity investment opportunities in the Americas in 2017.