Global investment firm KKR & Co announced on Wednesday that it had successfully raised $6.4 billion for its fund, focusing on infrastructure and energy-related investments across the fast-growing Asia Pacific region.
This fund, according to KKR, marks the largest pan-regional infrastructure fund raised for the Asia Pacific region to date.
Hardik Shah, a partner at KKR’s Infrastructure team based in Mumbai, highlighted the increasing importance of infrastructure and sustainable energy sources in the Asia Pacific region, driven by factors such as rising domestic consumption, rapid urbanization, and the emergence of a significant middle class.
The fund received strong support from a diverse range of global investors, including public and corporate pensions, sovereign wealth funds, insurance companies, endowment funds, and asset managers. Its mandate encompasses various sectors, including renewables, power and utilities, water and wastewater, digital infrastructure, and transportation.
KKR stated that it has already deployed more than half of the fund’s capital across approximately 10 investments. Recent activities include acquiring a 20% stake in Singapore Telecommunications’ regional data center business and investing $400 million in Malaysian subsea telecommunications cable services provider OMS Group.
Additionally, KKR, along with South Korea’s Taeyoung Group, is planning to sell their joint venture Ecorbit, potentially valuing the environment company at over $2 billion.
The rapid pace of mergers and acquisitions in the infrastructure and energy sectors globally has made this asset class increasingly popular. Notable recent transactions include BlackRock’s acquisition of Global Infrastructure Partners for $12.5 billion and U.S. private equity firm General Atlantic’s agreement to buy UK-based infrastructure investor Actis.
KKR, which established its global infrastructure team and strategy in 2008, manages over $56 billion in assets under management across more than 80 infrastructure investments globally. In the Asia Pacific region, KKR has organically grown to manage around $13 billion in assets since its inception in 2019.
David Luboff, Co-Head of KKR Asia Pacific and Head of Asia Pacific Infrastructure, emphasized that infrastructure remains a key focus area for KKR’s global and regional strategy.
U.S. law firm Debevoise & Plimpton represented KKR as primary fund counsel for the fundraiser.