Global investment firm KKR and Ramky Enviro Engineers Limited, a provider of environmental services and solutions in India and overseas, has completed their previously announced transaction. Under the terms of the transaction, KKR has acquired a 60 percent stake in REEL for approximately $510 million via a combination of primary and secondary investments. In addition to investing in REEL from its KKR Asian Fund III, the investment is part of KKR’s Global Impact strategy, which is focused on identifying and investing behind businesses with positive social or environmental impact that measurably contribute solutions to one or more of the United Nations Sustainable Development Goals.
M. Goutham Reddy, managing director and CEO of REEL, said, “India is home to some of the world’s most pressing waste management needs, and REEL has an important role to play in providing critical solutions to communities across the country.”
Over the past decade, KKR has been 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. The firm also has a history of investing in businesses that promote sustainable solutions to societal challenges. This experience of responsible investment combined with a changing landscape of global challenges led to KKR’s decision to create a dedicated global impact business in 2018. KKR’s impact strategy and investment in REEL will build on this experience.
