KKR seeks $12 bn to fund energy assets, projects
American global investment firm KKR and Co Inc plans to raise $12 billion for its flagship global fund that will invest in infrastructure assets such as oil and gas pipelines and renewable energy projects.
The fundraising decision comes as US President Joe Biden has been pushing US lawmakers to back a plan for trillions of dollars in new spending on projects to restore America's crumbling infrastructure.
KKR began raising the fund, KKR Global Infrastructure Investors 4, late last year alongside its other flagship funds, including the North America private equity fund, which aims to attract more than $15 billion.
Private equity firms tend to raise successor funds that are 10% to 20% larger than their predecessors. But KKR's latest global infrastructure fund would be significantly bigger than KKR Global Infrastructure Investors 3, which amassed $7.4 billion from investors in 2018.
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The prior funds, KKR Global Infrastructure Investors 2 and KKR Global Infrastructure Fund had raised $3.1 billion and $1 billion, respectively. As we have reported earlier, KKR said in January that it had raised $3.9 billion for its first Asia-Pacific infrastructure fund, surpassing the largest pool of cash in the region for investments in everything from renewable energy and waste management to communication towers. To achieve that funding, KKR had tapped three dozen investors in Europe, USA, the Middle-East and Asia-Pacific.
KKR's third and second infrastructure funds have generated 0.97 times and 1.49 times, respectively, of their investors' money as of March 2020, according to the New York City Police Pension Fund.
Some of the company’s recent investments include Canadian pipeline company Coastal GasLink, Indian power transmission developer IndiGrid Trust and Florida-based renewables energy operator Nitrogen Renewables.
KKR is a global investment firm that offers alternative asset management and capital markets, and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds.
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