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KKR raises $3.1B for global infrastructure fund

Alternative investment giant Kohlberg Kravis Roberts & Co Ltd (KKR) has raised $3.1 billion for its global infrastructure fund. Although the investment mandate is global, the fund would focus on investments in the block of developed markets under Organisation for Economic Co-operation and Development (OECD) countries, according to a press release.

With this new fund, KKR has a total corpus of around $5.6 billion in infrastructure assets under management and has deployed approximately $1 billion through infrastructure co-investments.

The fund received money from a diverse group including new and existing global investors, including public and corporate pensions, asset managers, sovereign wealth funds, insurance companies and foundations.

"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 Lipschultz, global head of KKR's energy & infrastructure business.

"In a volatile world, our infrastructure strategy offers stability with both current income and capital appreciation for investors," Lipschultz added.

Last November, KKR had raised $1.9 billion for its first close of the infrastructure fund.

KKR has been an active investor in the energy and infrastructure sectors for nearly three decades. It manages investments in energy and infrastructure, including oilfield services, petroleum, shale gas, social infrastructure, renewable energy and utilities assets in markets such as France, the Netherlands, Spain, the UK and North America.

Last year, KKR had appointed Tony Schultz and Ash Upadhyaya for its energy and infrastructure investment business in Asia.

KKR is yet to hop on big time in pure-play infrastructure investments in India although it has backed ventures like telecom infrastructure firm Bharti Infratel in the past.

In 2013, it raised $6 billion Asia fund II which followed $4 billion Asia fund it raised in 2007 and a $1 billion China Growth Fund in 2010.

In the infrastructure domain, last year IDFC Alternatives raised over $900 million in its India-focused fund.

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