KKR beat its own record for largest pan-regional infrastructure fundraise by securing $6.4 billion in commitments for KKR Asia Pacific Infrastructure Investors II. The previous record holder was the fund’s predecessor, KKR Asia Pacific Infrastructure Investors, which closed at $3.9 billion in 2021.
Fund II is squarely aimed at infrastructure-related investments throughout the Asia Pacific region. And KKR has wasted no time, quickly deploying over half of the fund’s capital into about 10 investments. The fund’s investment mandate spans various sectors, including renewables, power and utilities, water and wastewater, digital infrastructure and transportation.
“As Asia accounts for more than 60% of global growth, driven by rising domestic consumption and productivity, rapid urbanization, and an enormous emerging middle class, the need for new infrastructure and sustainable energy sources will continue to accelerate,” said Hardik Shah, a partner on KKR’s Infrastructure team based in Mumbai, India.
The fundraising effort received backing from a diverse group of global investors ranging from public and corporate pensions to sovereign wealth funds, insurance companies, endowments and asset managers.
The announcement comes a day after Generate Capital closed its latest infrastructure fund at $1.5 billion and follows a month of intense activity in the sector, which included BlackRock’s $3 billion acquisition of Global Infrastructure Partners.
KKR’s foray into global infrastructure began in 2008 and has grown to $56 billion in assets across more than 80 infrastructure investments overseen by a dedicated team of over 90 infrastructure investment professionals. The firm’s Asia Pacific infrastructure platform, which was launched in 2019, has grown organically to about $13 billion in AUM.
Fund II targets investments in critical infrastructure assets characterized by low volatility and robust downside protection — an approach executed by a dedicated investment team strategically positioned across markets in the Asia Pacific region.
“Our ability to create investment opportunities and successfully fundraise in a challenging macro environment reflects the strength of our localized teams who have a deep understanding of the markets and business landscapes where we invest, as well as KKR’s global expertise and capabilities,” said Keith Kim, a partner on KKR’s infrastructure team based in Seoul, South Korea.
KKR’s Asia Pacific strategies also encompass credit, private equity and real estate.
Debevoise & Plimpton served as the primary fund counsel.