Alternative asset and private equity investor KKR announced today that it has raised $2.8 billion at the final close of its second fund focused on investing in companies that contribute measurable progress toward the United Nations Sustainable Development Goals, KKR Global Impact Fund II.
Launched in mid-2021, the new fund more than doubled the size of its predecessor Global Impact Fund, which raised $1.3 billion at its final close in 2020.
Ken Mehlman, KKR Partner and Co-Head of KKR Global Impact, said:
“Globally, there is increased urgency to solve some of the world’s greatest challenges, such as the energy transition, supply chain resiliency, digitization and a shortage of skilled workers. For example, analysis by KKR Global Impact portfolio company Lightcast found that the skills requested for the average U.S. job have changed 37% since 2016, requiring a significant acceleration of upskilling. We believe our Global Impact strategy is well-positioned to invest behind these macro tailwinds.”
KKR launched its global impact strategy in 2018, aimed at investing in companies with a core product or service providing a solution to critical and relevant social or environmental challenges, as defined by the SDGs, the 17 categories of goals adopted as part of the 2030 Agenda for Sustainable Development, with the aim to protect the planet and improve the quality of life globally. The SDGs include targets such as ending poverty and hunger, improving education, and protecting the environment.
According to KKR, the strategy targets companies in which financial performance and positive societal impact are aligned, and focuses on key investment themes including Climate Action, Sustainable Living, Lifelong Learning, and Inclusive Growth, and addressing challenges ranging from climate change and reliance on non-renewable resources to lack of access to quality education, and social and economic inequality.
KKR said that the fund received backing from a diverse range of investors, including public pensions, family offices, insurance companies, and other institutional investors, and that the firm will invest $250 million in the Fund alongside investors.
Robert Antablin, KKR Partner and Co-Head of KKR Global Impact, said:
“We launched KKR Global Impact in 2018 because we saw an opportunity to invest behind proven companies that deliver scalable, commercial solutions to global problems. Since then, that opportunity set has continued to grow, and we are thrilled with the outcomes our portfolio companies have been able to achieve. We are grateful for the support of our investors who share our conviction in this space, which we believe is well placed given the strong performance of our first fund.”