KKR raises first Asia Pacific infrastructure fund at USD3.9 billion

KKR & Co., a US-based investment powerhouse, raised USD3.9 billion for its first Asia Pacific infrastructure-related fund, becoming the largest pan-regional infrastructure fund for investments in everything from waste management and renewable energy to communication towers.

According to Alisa Amarosa Wood, head of KKR’s Private Markets Products Group, the firm invested about USD300 million in the fund alongside three dozens investors in the US, Europe, the Middle East and Asia-Pacific, through its balance sheet and its employee commitments.

Wood also commented that institutional investors are increasingly looking for a “one-stop shop” with deal-making, operational and capital market expertise, favoring assets with a lower-risk profile that aren’t tied to public market indexes.

KKR first established its global infrastructure team and strategy in 2008 but entered Asia only 11 years later and has since invested more than USD24 billion in about 40 assets around the world. It hired David Luboff, then CEO of  Macquarie Group in 2019 to build on its Asia team, with plans to add more in Japan.

The firm has already committed over USD1.8 billion in six infrastructure investments in Asia, including about a USD400 million acquisition of a controlling stake in India Grid Trust, India’s leading infrastructure investment trust and a USD192 million purchase of a minor stake in First Gen, a leading Philippines power producer.

Global private equity firms are shifting away from focusing on buyouts toward becoming investment houses with broad offerings in alternative assets such as infrastructure, and real estate. They are finding willing governments in Asia, who need private capital to finance airports, toll roads and utilities. More secondary sales are coming to the market as capital flows into the region.

Debevoise & Plimpton LLP represented KKR as primary fund counsel for this fundraise.