Fundraising - NOVEMBER 11, 2014

KKR global infrastructure fund raises $1.2b

by Andrea Waitrovich

Kohlberg Kravis Roberts & Co. has raised $1.24 billion for its second global infrastructure fund, according to an SEC filing.

KKR Global Infrastructure Investors II will primarily invest in renewable energy, pipelines, utilities and transportation-related assets. The investment strategy will be to make investments in long-lived infrastructure assets that have low risk profiles and low correlation to the performance of the broader economy. There will be an emphasis on investing in assets with the potential for long-term capital appreciation and current income generation, with Fund II seeking to generate an overall gross return in the low to mid-teens.

Recent investors in Fund II include the Hawaii Employees’ Retirement System, Merced County (Calif.) Employees’ Retirement Association, New Mexico Public Employees Retirement Association and Maine Public Employees’ Retirement System.

KKR Global Infrastructure Investors I was formed in 2011 with$1.04 billion in commitments. Fund I has invested in 11 portfolio companies across multiple sectors and geographies. According to a Bloomberg article, the fund is 60 percent to 70 percent invested. KKR Global Infrastructure Fund I has a net 8.7 percent IRR early in the fund life as of July 31, 2014.

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