KKR has so far raised $3bn (€2.4bn) for its global open-ended core infrastructure fund, according to an investor.
The New Mexico State Investment Council (SIC) revealed in a meeting document that it had approved a $100m commitment to KKR Diversified Core Infrastructure Fund, a fund hoping to raise up to $5bn in the coming years.
New Mexico SIC’s commitment is part of $1bn worth of commitments from limited partners, represented by the Townsend Group, into the KKR fund.
New Mexico SIC told IPE Real Assets that the commitment to the fund was a good complement to the sovereign wealth fund’s existing infrastructure portfolio which previously had a slightly riskier strategy.
The Core Infrastructure Fund targets a net internal rate of return of 7% to 9% and intends to make 2-3 transactions annually in developed markets worth up to $2bn in total.
The fund has two seed investments financed by $650m from the investors in the fund and $1.7bn from co-investors. The assets are wind and solar properties in the US and an electricity distribution centre in Finland.
To read the digital edition of the latest IPE Real Assets magazine click here.
