KKR has completed the final closing of KKR Global Infrastructure Investors V with $19.2 billion in commitments, making it the firm’s largest infrastructure fund raised to date.
Fund V is a Core+ strategy focused primarily on critical infrastructure assets and businesses in North America and Western Europe. The vehicle is the fifth vintage of KKR’s Global Infrastructure Strategy.
The new fund contributes to approximately $45 billion raised across KKR’s latest infrastructure vehicles globally.
KKR established its infrastructure investment business in 2008. The platform now manages approximately $120 billion in infrastructure equity, up from $13 billion in 2019.
The firm has completed more than 100 infrastructure investments and has built a global team of approximately 160 professionals focused on investing and portfolio value creation.
Fund V will pursue diversified infrastructure opportunities involving businesses and assets that provide critical services, have significant barriers to entry and are expected to generate resilient long-term cash flows.
KKR has already committed more than $9 billion from the fund across several investments.
The portfolio includes Altitude III, EDF Power Solutions North America, Enilive, FiberCop, Global Technical Realty, Gulf Data Hub, Metronet, Sempra Infrastructure and The Parking Spot.
Across its broader global infrastructure strategy, KKR has committed more than $70 billion of equity to investments in North America and Europe.
The firm sees growing demand for infrastructure investment as digitalization, electrification and industrial expansion increase the need for data centers, communications networks, power systems, transportation assets and other essential services.
In North America, KKR believes long-term capital will be required to support the infrastructure underpinning the next stage of economic growth.
The firm also expects European infrastructure investment to play a larger role in supporting regional competitiveness, energy security and economic resilience.
Fund V received commitments from a global investor base that included pension plans, sovereign wealth funds, insurance companies, asset managers, private wealth platforms and family offices.
Both existing KKR clients and new investors participated in the fundraising.
Debevoise & Plimpton served as KKR’s primary fund counsel for the offering.
KEY QUOTES:
“When we launched KKR’s infrastructure business in 2008, we believed there was an opportunity to do infrastructure investing differently, bringing a disciplined investment approach, operational expertise and heritage of value creation to the essential assets that power economies and communities around the world.”
“Nearly two decades later, Fund V marks an important milestone in that journey. It reflects the trust our investors have placed in our team, the strength of the global platform we’ve built together and our conviction that the opportunity in infrastructure has never been greater.”
Raj Agrawal, Global Head of Real Assets at KKR
“Demand for infrastructure investment across North America continues to accelerate as digitalization, electrification and industrial growth reshape the economy.”
“Meeting that demand will require significant long-term capital, and we believe KKR is well positioned to partner with the businesses and asset owners investing in the infrastructure that will underpin the next phase of economic growth.”
Brandon Freiman, Head of North American Infrastructure at KKR
“Europe is entering a period where investment in critical infrastructure will play an increasingly important role in supporting competitiveness, energy security and economic resilience.”
Vincent Policard, Co-Head of European Infrastructure at KKR
“We believe this result speaks to our differentiated investment approach and the growing recognition of infrastructure as an essential long-term allocation.”
Brandon Donnenfeld, Managing Director and Chief Development Officer for KKR’s Infrastructure Business
