KKR raises almost $4bn for Asia-Pacific infrastructure strategy

KKR announced the final close of the $3.9 billion KKR Asia Pacific Infrastructure Investors SCSp, a fund focused on infrastructure-related investments across Asia Pacific. In Asia, KKR has already committed $1.8 billion across six investments as part of the Firm’s dedicated Asia Pacific infrastructure strategy, which was launched in 2019. The $222 billion firm’s Asia Pacific infrastructure portfolio includes India Grid Trust, India’s leading infrastructure investment trust; Virescent Infrastructure, a renewable energy company in India; Eco Solutions Group, a leading environmental services provider in South Korea; First Gen, a leading Philippines power producer; TSK Corporation, an environmental services management company in South Korea; and Pinnacle Towers, a leading telecommunications infrastructure provider in the Philippines. “We are thrilled to announce the close of our inaugural Asian infrastructure fund, coming at this pivotal time for the infrastructure sector,” said Ming Lu, head of KKR Asia Pacific. “We believe that Asia Pacific contains some of the most favorable macroeconomic dynamics in the world, and that the region is expected to account for more than half of the world’s economic growth in the coming years.” Lu added that the demand to develop or upgrade critical infrastructure assets currently outpaces the available public funding in many markets. KKR sees private capital increasingly playing a key role to fill the gap in the region. The latest fund, believed to be the largest pan-regional infrastructure fund to have been raised for the Asia Pacific region, will focus on critical infrastructure with low volatility and strong downside protection where KKR believes it can achieve attractive risk-adjusted returns by leveraging its global network of industry experts. KKR has invested approximately $300 million in capital alongside external investors. The fund’s mandate is to invest across emerging and developed markets in the regions in sectors including waste, renewables, power and utilities, telecommunications and transportation infrastructure. The significantly oversubscribed fund closed at its hard cap, received strong backing from a diverse group of prominent global infrastructure investors, including public and corporate pensions, sovereign wealth funds, insurance companies, endowments, private banking platforms, family offices and high net worth individual investors. “The successful close of our new infrastructure fund demonstrates the compelling value proposition that KKR offers to investors. We are grateful for the confidence investors have placed in our Asia Pacific infrastructure strategy and talented team as they look for investments that can deliver stable capital appreciation in today’s volatile environment,” said Alisa Amarosa Wood, head of KKR’s Private Markets Strategies Group. KKR first established its global infrastructure team and strategy in 2008. Overall KKR has deployed more than $24 billion across approximately 40 infrastructure investments, and currently has a team of approximately 45 dedicated investment professionals. “One of our differentiators is KKR’s ability to provide flexible capital solutions to meet the needs of its portfolio companies across all asset classes,” said Raj Agrawal, global head of Infrastructure at KKR. “This unique blend of deal sourcing and structuring, along with our deep operational management and active engagement allows us to take advantage of the full range of investment opportunities created by Asia Pacific’s continued emergence as an economic engine for the 21st Century.”

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