KKR raises $1.3b for global impact fund

KKR Global Impact has been active since 2018 and made five investments so far, focusing on lower middle market opportunities. They include Barghest Building Performance, a Singapore-based provider of energy solutions for heating and cooling systems, and Ramky Enviro Engineers, an Indian waste management solution provider.

The LP base comprises public pension funds, family offices, and high net worth individuals, among others. There is also a $130 million contribution from KKR.

“The SDGs were developed to mobilize citizens, policymakers, technologists and investors to address global challenges. 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,” said Robert Antablin and Ken Mehlman, co-heads of KKR Global Impact, in a statement.

When possible, the fund will obtain control of portfolio companies. Of the five existing investments, KKR Global Impact has majority stakes in two, while a third is a greenfield platform aimed at improving wastewater treatment in different countries.

“One of the things that we did early on was to say, ‘Where we are going to have the greatest impact is where we are taking control because how we get data is not an issue,” David Katz, a director and head of public affairs for KKR in Asia, told the Hong Kong Venture Capital & Private Equity Association’s (HKVCA) Asia forum last month.

Several other global private equity firms have launched impact-focused vehicles. TPG Capital launched The Rise Fund in 2016, going on to raise $2 billion, while Bain Capital established the Double Impact Fund a year later. Last year, Partners Group achieved $210 million in fund commitments for a social impact fund and The Blackstone Group set up its own impact platform. Singapore's Temasek Holdings has followed suit.

Several local impact funds already exist across Asia but they have historically struggled to attract institutional investors. Global players are seen as a potential exit channel for their investments, which may help stimulate interest, but for many GPs, impact remains a tough sell.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Fundraising
• Growth
• KKR
• Impact investment
• ESG
• Asia