KKR has raised $17bn (€14.7bn) for its latest global infrastructure fund to mainly target investment opportunities in OECD countries in North America and Western Europe.
KKR said it will be investing $1bn of capital in the KKR Global Infrastructure Investors IV fund alongside these investors through the firm’s balance sheet, affiliates, and employee commitments.
KKR said the fund received strong support from a diverse group of both new and existing investors globally, including public and private pension plans, sovereign wealth funds, insurance companies, endowments and foundations, private wealth platforms, family offices, high-net-worth individual investors and other institutional investors.
As previously reported, the State of Michigan Retirement System has approved a $100m (€85.3m) commitment into the KKR fund.
The New York State Common Retirement Fund had also committed to the global infrastructure fund which at the time was seeking to raise $12bn. Minnesota State Board of Investment also previously disclosed plans to make a capital commitment to the fund.
Brandon Freiman, the head of North American infrastructure at KKR, said: “Global demand for building and upgrading critical infrastructure, as well as supporting responsible energy transition and growing broadband access, requires funding far in excess of public sources, which provides a big opportunity for private capital.”
Vincent Policard, co-head of European infrastructure at KKR, said: “With the close of our latest infrastructure fund, we look forward to deepening our commitment to meeting this pressing global need and continuing to make investments where we believe our differentiated approach and platform can create value for the long-term.”
Alisa Amarosa Wood, global head of private markets and real assets product strategies at KKR, said: “At more than double the size of its predecessor, the success of KKR Global Infrastructure Investors IV speaks to the robust opportunities that we see in this asset class and to the confidence that our investors continue to place in our infrastructure team and our ability to deliver compelling risk-adjusted returns across a variety of market conditions.”
Brandon Donnenfeld, a managing director who leads capital raising and business development for KKR’s infrastructure business, said: “When we first launched our infrastructure investing business more than a decade ago, we did so with a distinctive strategy focused on downside protection, which has served us well in performing for our investors, particularly throughout the COVID-19 pandemic.
“We are thrilled to have their continued support and look forward to continuing to perform for our investors through this strategy.”
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