KKR: Final Closing Of $1.3 Billion Global Impact Fund

By Noah Long ● February 14, 2020
  • Global investment firm KKR recently announced the final closing of KKR Global Impact Fund SCSp ― which is a $1.3 billion fund dedicated to investment opportunities in companies whose core business models provide commercial solutions to an environmental or social challenge

Global investment firm KKR recently announced the final closing of KKR Global Impact Fund SCSp ― which is a $1.3 billion fund dedicated to investment opportunities in companies whose core business models provide commercial solutions to an environmental or social challenge.

KKR Global Impact has a focus on identifying and investing behind opportunities across the Americas, Europe, and Asia where financial performance and societal impact are naturally aligned. And specifically, the fund is focused on generating private equity risk-adjusted returns by investing in companies in the lower middle market that contribute measurable progress toward one or more of the United Nations Sustainable Development Goals (“SDGs”).

“The UN SDGS were developed to mobilize citizens, policymakers, technologists and investors to address global challenges. As investors, we have a significant role to play in building businesses that contribute to SDG solutions while also generating financial returns for our fund investors by doing so,” said Robert Antablin and Ken Mehlman, KKR Partners and Co-Heads of KKR Global Impact.

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KKR has identified a number of macro themes where it believes KKR Global Impact can contribute, meaningfully to helping achieve the SDGs:

1.) Mitigating and adapting to climate change; protecting clean water

2.) Learning and workforce development

3.) Responsible waste management

4.) Leveraging technology to enhance safety, mobility, and sustainability.

5.) Serving globally conscious consumers healthier and more sustainable products and services

6.) Upgrading declining industry and infrastructure

In the past decade, KKR has been a leader in driving and protecting value throughout the firm’s private markets portfolio through thoughtful Environmental, Social and Governance (“ESG”) management as well as measuring and reporting on performance to the public and investors.

And the firm also has a history of investing in businesses that promote solutions to broader societal challenges, having invested $5.5 billion across 35 companies in solutions-oriented businesses that address policy imperatives including workforce development, green energy, responsible waste management, and clean water protection.

KKR had launched its global impact business in 2018. And since then, the 12 person global team has executed a number of related transactions, including investments in Barghest Building Performance (BBP), Ramky Enviro Engineers, KnowBe4, Burning Glass, and the formation of a wastewater treatment platform. The fund received strong backing from a diverse group of new and existing global investors, including public pensions, family offices, high net worth individual investors, and other institutional investors. KKR will be investing over $130 million of capital in the fund alongside these investors through the firm’s balance sheet and employee commitments.

“We are thrilled to see our investors’ shared enthusiasm for the tremendous opportunity we see ahead for KKR Global Impact and will build on this to help set the new standard across investing, value creation and measuring success in the space,” explained Alisa Amarosa Wood, KKR Partner and Head of KKR’s Private Market Products Group.