KKR is planning to establish a private infrastructure investment trust (InvIT) to house operating renewable energy assets in India, sources with knowledge of the matter told Mint.
This will be the private equity firm’s second InvIT in India, following its investment in India Grid Trust in 2019. Together KKR and GIC hold a 60 percent stake in India Grid Trust, which houses power transmission line projects as well as renewable energy solar assets.
“KKR has started work on setting up a private InvIT under which all the renewable assets they are acquiring will be added,” sources told Mint. “The plan is to shift the already acquired assets into the InvIT and, once they have added a significant mass of assets, they will monetize it by selling units of the InvIT to long-term investors, such as pension funds, sovereign wealth funds and insurance companies.”
