KKR raises US$6.4bil for biggest Asia Pacific fund

KKR said it had already invested or committed more than half of its capital from the fund across some 10 investments. — Reuters

MUMBAI: Global investment firm KKR & Co says it has raised US$6.4bil for its fund focused on infrastructure and energy related investments across the fast-growing Asia Pacific region.

New York-based KKR said the fund was the largest pan-regional infrastructure fund to have been raised for Asia Pacific.

“As Asia accounts for more than 60% of global growth, driven by rising domestic consumption and productivity, rapid urbanisation, and an enormous emerging middle class, the need for new infrastructure and sustainable energy sources will continue to accelerate,” said Hardik Shah, a partner at KKR’s Infrastructure team based in Mumbai, in the statement.

KKR said the fund received strong backing from new and existing global investors including public and corporate pensions, sovereign wealth funds, insurance companies, endowment funds and asset managers.

The fund’s mandate covers sectors including renewables, power and utilities, water and wastewater, digital infrastructure, and transportation, according to KKR.

It added that it had already invested or committed more than half of its capital from the fund across some 10 investments.

Among KKR’s recent deal activities are the acquisition of a 20% stake in Singapore Telecommunications’ regional data centre business for S$1.1bil (US$821.57mil) and investment of US$400mil in Malaysian subsea telecommunications cable services provider OMS Group.

KKR and South Korea’s Taeyoung Group are planning to sell their joint venture Ecorbit in a deal that could value the environment firm at more than US$2bil, Reuters reported, citing people with knowledge of the matter. US law firm Debevoise & Plimpton represented KKR as primary fund counsel for the fundraise. — Reuters