KKR closes Asia infrastructure fund at $3.9b

The vehicle launched in mid-2019 with a target of $3 billion. LPs include Fubon Life Insurance and Employees Retirement System of Texas, the latter of which provided $100 million, according to AVCJ Research. There were also contributions from sovereign wealth funds, endowments, private banking platforms, and family offices. KKR contributed $300 million from its balance sheet and through employee commitments.

The private equity firm said the fund’s size aligns with its long-term expectations for infrastructure deal flow in the region across both emerging and developed markets. Target sectors will include waste, renewables, power and utilities, telecommunications, and transportation. Recent investments include a 9% stake in power plant operator First Gen and telecoms company Pinnacle Towers. Both are based in the Philippines.

“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,” Raj Agrawal, KKR’s global head of infrastructure, said in a statement. “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.”

KKR established its global infrastructure strategy in 2008 and has since deployed more than $24 billion across about 40 investments. Its third global infrastructure fund closed at $7.4 billion in 2018. The infrastructure team currently includes 45 dedicated investment professionals. David Luboff, head of Asia infrastructure and a former senior managing director of Macquarie Infrastructure & Real Assets, joined the firm in 2019 and is based in Singapore.

Investment in Asia amounts to $1.8 billion across six deals to date. In addition to First Gen and Pinnacle, the portfolio includes India Grid Trust, Eco Solutions Group, and TSK Corporation, an environmental services management company. The latter two are based in Korea. Last November, KKR launched Virescent Infrastructure, an Indian renewable energy platform seeded with five solar assets across three states.

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• Topics
• Fundraising
• Infrastructure
• GPs
• Infrastructure
• Asia
• KKR
• energy
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• renewable energy