Less than three months after hitting the $2.5 billion mark, Kohlberg Kravis Roberts (KKR) has held a final close for its second infrastructure vehicle on $3.1 billion, slightly above its hard cap, the New York-based firm announced today in a statement.
KKR Global Infrastructure Investors II will make investments in the energy supply chain, water systems, roads, railways, airports and communications networks, KKR said, adding that the focus will be on OECD countries, in continuation with the firm’s existing investment strategy. The vehicle is about triple the size of its predecessor, which closed in 2012 on $1 billion.
“A decrease in public funding and weakened economic conditions in many regions are driving tremendous global demand for private investments in infrastructure, and KKR’s differentiated strategy allows us to meet this need with value-added solutions,” said Marc Lispschultz, global head of KKR’s energy and infrastructure business.
In April, when the firm included the announcement of the fund’s $2.5 billion second close along with its first-quarter results, it specified that KKR Global Infrastructure Investors II has a 12 year-investment horizon and a focus on long-lived (10+ year contracts) core infrastructure assets.
Both new and existing global investors committed to the fund, including public and corporate pensions, asset managers, sovereign wealth funds, insurance companies, and foundations, KKR said. With the closing of the fund, the firm now has approximately $5.6 billion in infrastructure assets under management. It has also deployed about $1 billion through co-investments.
According to Infrastructure Investor’s Research & Analytics, institutional investors participating in KKR’s latest offering include the Arkansas Teacher Retirement System (ATRS), the Leicestershire County Pension Fund, the Employees’ Retirement System of the State of Hawaii, the Merced County Employees Retirement Association, the Public Employees Retirement Association of New Mexico and the Maine Public Employees Retirement System.
In addition to infrastructure, KKR also invests in private equity, real estate, credit and hedge funds. As of March 31, its assets under management totalled $99.1 billion.