Global private equity firm KKR has raised $19.2 billion for the largest infrastructure fund in its history, focusing on investments in critical assets across North America and Western Europe as demand for long-term infrastructure capital grows.
The KKR Global Infrastructure Investors V fund is part of around $45 billion the firm has secured across its latest infrastructure investment vehicles worldwide and will focus on investments in North America and Western Europe, the New York company said on Monday.
Fund V was backed by a "broad global investor base" across pension plans, sovereign wealth funds, insurance companies, asset managers, private wealth platforms and family offices, KKR said.
KKR's infrastructure unit, established in 2008, now manages around $120 billion in infrastructure equity, up from $13 billion in 2019, making it one of the world's largest. It has completed more than 100 infrastructure investments.
KKR seeks to tap into the growing digitalisation, electrification and industrial sectors in North America. In Europe, the move is an effort at supporting the continent's competitiveness, energy security and economic resilience, it said.
"Fund V ... 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," said Raj Agrawal, global head of real assets at KKR.
The move comes as private equity firms continue to build up their assets, especially in critical infrastructure that several countries seek to boost in preparation for their economic futures.
Long-term capital is vital to these goals, as it provides an avenue for sustained development and the potential to attract more investments.
For critical infrastructure, more investment is vital as it powers industries such as utilities, energy, communications, transport and health care, which in turn are vital to economic stability, national security and overall growth.
"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," said Brandon Freiman, head of North American infrastructure at KKR.
KKR has been one of the most active globally and in the Middle East. Last month, KKR formed a joint venture with Blackstone, Brookfield Asset Management and Kuwait Oil Company for a $16 billion leasing agreement for Kuwait's crude pipelines.
Last year, KKR appointed David Petraeus as chairman of its Middle East arm as the company seeks to expand its footprint in the region.
