Global investment firm KKR has successfully concluded the fundraising for its KKR Asia Pacific Infrastructure Investors II SCSp, securing a substantial $6.4bn for infrastructure-related investments across the Asia Pacific.
The final close marks a significant milestone, as the fund now stands as the largest pan-regional infrastructure fund dedicated to the Asia Pacific region.
This achievement closely follows KKR’s inaugural Asia Pacific-dedicated infrastructure fund, KKR Asia Pacific Infrastructure Investors SCSp, which closed in 2021 at $3.9bn, claiming the title of the largest Asia-dedicated pan-regional fund at that time. Since the launch of the latest Fund, KKR has already deployed over half of its capital, committing to around 10 investments.
KKR’s Asia Pacific infrastructure platform, initiated in 2019, has seen organic growth to reach approximately $13bn in assets under management. The firm’s strategic investment approach involves a meticulous selection process, combined with unique investment sourcing and structuring capabilities executed by a dedicated team situated across Asian Pacific markets.
KKR Asia Pacific co-head and KKR Asia Pacific Infrastructure head David Luboff said: “Infrastructure is a key pillar of KKR’s global and regional strategy. We are proud to have built and scaled a market-leading platform in Asia Pacific in a short span of time, and are grateful for the continued support by our investors as we close our milestone second pan-regional fund.
“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.
“Their commitment underscores our shared conviction that Asia Pacific’s infrastructure sector holds tremendous potential over the long term.”
The fund’s focus lies on critical infrastructure characterised by low volatility and robust downside protection. KKR aims to leverage its global network of industry experts, a highly experienced Asia Pacific team, and a proven track record of operational value creation to achieve attractive risk-adjusted returns.
The diverse investment mandate of the fund spans various sectors, encompassing renewables, power and utilities, water and wastewater, digital infrastructure, transportation, and more.
This successful fundraising effort received strong support from a diverse group of investors worldwide, including public and corporate pensions, sovereign wealth funds, insurance companies, endowment funds, and asset managers.
KKR’s global infrastructure team and strategy, established in 2008, have positioned the firm as one of the most active infrastructure investors globally. Presently managing approximately $56bn in assets across over 80 infrastructure investments, KKR boasts a dedicated team of over 90 infrastructure investment professionals globally.
Legal representation for KKR during this fundraise was provided by Debevoise & Plimpton, serving as primary fund counsel.
