KKR announced the final closing of its KKR Global Impact Fund, which attracted $1.3 billion to invest in companies whose core business models provide commercial solutions to an environmental or social challenge.
The new fund received strong backing from a diverse group of new and existing global investors, including public pensions, family offices, high net worth individual investors and other institutional investors. KKR will be investing more than $130 million of capital in the fund alongside these investors through the Firm’s balance sheet and employee commitments.
KKR said this fund is focused on identifying and investing behind opportunities across the Americas, Europe and Asia where financial performance and societal impact are intrinsically aligned. The strategy is private equity with a lower middle market emphasis in investing in companies that contribute measurable progress toward one or more of the United Nations Sustainable Development Goals (UN SDGS).
The macro themes the KKR Global Impact fund is eyeing are: mitigating and adapting to climate change; protecting clean water; learning and workforce development; responsible waste management; leveraging technology to enhance safety, mobility and sustainability; serving globally conscious consumers healthier and more sustainable products and services; and upgrading declining industry and infrastructure.
“The UN SDGS were developed to mobilize citizens, policymakers, technologists and investors to address global challenges,” said Robert Antablin and Ken Mehlman, KKR partners and co-heads of KKR Global Impact. “As investors, we have a significant role to play in building businesses that contribute to SDG solutions while also generating financial returns for our fund investors by doing so.”
KKR’s history of sustainable investment totals investments of $5.5 billion across 35 companies in solutions-oriented business in the areas of policy including workforce development, green energy, responsible waste management, clean water protection and others.
The 12-person global team has executed a number of transactions within KKR’s global impact business since 2018. Those include investments in: Barghest Building Performance (BBP); Ramky Enviro Engineers; KnowBe4; Burning Glass; and the formation of a wastewater treatment platform.