Global private equity firm KKR & Co, which has been active in India’s infrastructure segment, said Thursday it has closed its second infrastructure fund for the Asia Pacific region.
The New York-based investment firm raised $6.4 billion for its KKR Asia Pacific Infrastructure Investors II and said that it was the largest infrastructure fund to have been raised for Asia Pacific.
The fund received strong backing from a diverse group of new and existing prominent global investors across the world, including public and corporate pensions, sovereign wealth funds, insurance companies, endowment funds, and asset managers, KKR said.
This follows the PE firm’s inaugural infrastructure fund for the region, KKR Asia Pacific Infrastructure Investors, which closed at $3.9 billion in 2021, emerging as the largest pan-regional fund at that time for Asia Pacific. Since its launch, KKR has committed over half of its capital in around 10 investments.
“As Asia accounts for more than 60% of global growth, driven by rising domestic consumption and productivity, rapid urbanisation, and an enormous emerging middle class, the need for new infrastructure and sustainable energy sources will continue to accelerate,” said Hardik Shah, a partner in KKR’s infrastructure team based in Mumbai. “We believe this backdrop presents a significant opportunity for value-added private infrastructure investors.”
The fund will prioritise investments in critical infrastructure with low volatility and robust downside protection, spanning sectors such as renewables, power and utilities, water and wastewater, digital infrastructure, and transportation.
“Infrastructure is a key pillar of KKR’s global and regional strategy. The global investors’ commitment underscores our shared conviction that Asia Pacific’s infrastructure sector holds tremendous potential over the long term,” said David Luboff, co-head of KKR Asia Pacific and head of Asia Pacific infrastructure at KKR.
In the Asia Pacific region, KKR has seen organic growth to approximately $13 billion in assets under management since its inception in 2019, according to a company statement. KKR’s India infrastructure portfolio includes investments in India Grid Trust, renewable energy company Virescent Infrastructure, highway networks operator Highway Concessions, Hero Future Energies, decarbonization platform Serentica Renewables, and a pallet pooling platform LEAP India.
KKR initially established its global infrastructure team and strategy in 2008 and currently hs $56 billion in assets under management across more than 80 infrastructure investments worldwide.
