Global investment firm KKR has raised US$6.4 billion at the final close of its Asia Pacific Infrastructure Investors II, the largest pan-regional infrastructure fund to have been raised for Asia-Pacific.
The fund’s close follows the inaugural Asia Pacific Infrastructure Investors, which closed at US$3.9 billion in 2021 as the largest Asia-dedicated pan-regional fund at the time.
Since the fund’s launch, KKR has already deployed or committed more than half of its capital across approximately 10 investments. Since its inception in 2019, the infrastructure platform has organically grown to approximately US$13 billion in assets under management.
“The success of the fundraise is a testament to the confidence that global investors have in our ability to deliver strong risk-adjusted returns and differentiated value-add through our established multi-asset platform, local presence in key markets, and strong ability to collaborate across multiple strategies and the region,” says David Luboff, co-head of KKR Asia-Pacific and head of Asia-Pacific infrastructure at KKR.
According to KKR, the fund will focus on critical infrastructure with low volatility and strong downside protection. It has a broad investment mandate across various sectors, including renewables, power and utilities, water and wastewater, digital infrastructure, and transportation, among others.
The fund received strong backing from a diverse group of new and existing prominent global investors across the world, including public and corporate pensions, sovereign wealth funds, insurance companies, endowment funds, and asset managers.
Debevoise & Plimpton represented KKR as primary fund counsel for its latest fundraise.
KKR first established its global infrastructure team and strategy in 2008 and has since been one of the most active infrastructure investors around the world. Today, the firm manages approximately US$56 billion in AUM across more than 80 infrastructure investments, and has a team of more than 90 dedicated infrastructure investment professionals globally.
Among KKR’s recent infrastructure investments in the region are:
- US$800 million for a 20% stake in Singtel’s regional data centre platform.
- US$400 million in OMS Group, an Asia-focused provider of subsea cable services.
- Pinnacle Towers, the firm’s tower platform and also the largest independent tower operator in the Philippines with 5,000 towers.
- US$650 million in Serentica Renewables, a decarbonization platform providing complex clean energy solutions for hard-to-abate industries in India.
- Highways Infrastructure Trust, KKR’s road platform following the acquisition of Highway Concessions One, which has a portfolio of more than 650 kilometres of operating roads.
- A second investment in redeemable convertible preferred shares of SK E&S, a South Korean energy company, to accelerate its transformation into a global clean energy solution provider and energy transition.
- Bushu Pharmaceuticals, a pure-play pharmaceutical contract development and manufacturing organization in Japan.
- A majority stake in LEAP India, a leading pallet pooling platform in South Asia.