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.
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