KKR has reached final close of its $19.2bn (€16.6bn) Global Infrastructure Investors V fund (Fund V), the fifth vintage of its global infrastructure strategy, and KKR’s largest infrastructure fund raised so far.
The core+ fund is focused on investing in critical infrastructure assets and businesses primarily in North America and Western Europe. The capital raising was supported by a broad global investor base of new and existing investors spanning pension plans, sovereign wealth funds, insurance companies, asset managers, private wealth platforms, and family offices, KKR said.
Fund V contributes to approximately $45bn raised across KKR’s latest infrastructure vehicles globally, the firm added.
Raj Agrawal, global head of real assets at KKR, said: “When we launched KKR’s infrastructure business in 2008, we believed there was an opportunity to do infrastructure investing differently, bringing a disciplined investment approach, operational expertise and heritage of value creation to the essential assets that power economies and communities around the world.
“Nearly two decades later, Fund V marks an important milestone in that journey. It reflects the trust our investors have placed in our team, the strength of the global platform we’ve built together, and our conviction that the opportunity in infrastructure has never been greater.”
KKR said Fund V has already committed over $9bn across investments including Altitude III, EDF power solutions North America, Enilive, FiberCop, Global Technical Realty, Gulf Data Hub, Metronet, Sempra Infrastructure and The Parking Spot. To date, KKR has committed over $70bn of equity across global infrastructure strategy investments in North America and Europe.
Brandon Freiman, head of North American infrastructure at KKR, said: “Demand for infrastructure investment across North America continues to accelerate as digitalisation, electrification and industrial growth reshape the economy. Meeting that demand will require significant long-term capital, and we believe KKR is well positioned to partner with the businesses and asset owners investing in the infrastructure that will underpin the next phase of economic growth.”
Vincent Policard, co-head of European infrastructure at KKR added that Europe is entering a period where investment in critical infrastructure will play an increasingly important role in supporting competitiveness, energy security and economic resilience.
Brandon Donnenfeld, managing director and chief development officer for KKR’s infrastructure business, said: “Having invested across the region for many years, we believe our local presence, global network and long-term approach uniquely position us to work with businesses, communities and public-sector stakeholders as these needs continue to grow.
“We are grateful to receive strong support from both longstanding clients who have partnered with us across multiple fund vintages and new investors from around the world. We believe this result speaks to our differentiated investment approach and the growing recognition of infrastructure as an essential long-term allocation.”
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