Global alternative asset and private equity investor KKR announced today the final closing of its $17 billion KKR Global Infrastructure Investors IV fund. The fund significantly surpassed the firm’s reported initial target of $12 billion, and more than doubled the size of its $7.2 billion predecessor fund, as global themes from digital communications to energy transition drive demand for infrastructure investment vehicles.
According to KKR, the fund received support from a broad mix of new and existing investors, including pension plans, sovereign wealth funds, insurance companies, endowments and foundations, private wealth platforms, family offices, and high-net-worth individual investors, and KKR will invest $1 billion in the fund through the firm’s balance sheet, affiliates, and employee commitments.
Vincent Policard, Co-Head of European Infrastructure at KKR, said:
“With the close of our latest infrastructure fund, we look forward to deepening our commitment to meeting this pressing global need and continuing to make investments where we believe our differentiated approach and platform can create value for the long-term.”
The closing comes as global infrastructure trends including energy transition and digital communications investment drive demand for private infrastructure investment. KKR cited a McKinsey Global Institute study which found that investments necessary to support economies, including roads, railways, ports, airports, power, water, and telecommunications, will require $3.7 trillion of annual investments on average between 2017 – 2035, with up to another $1 trillion annually required to meet the UN Sustainable Development Goals (SDGs).
Brandon Freiman, Head of North American Infrastructure at KKR, said:
“Global demand for building and upgrading critical infrastructure, as well as supporting responsible energy transition and growing broadband access, requires funding far in excess of public sources, which provides a big opportunity for private capital.”