News: Exclusive: KKR seeks $12 billion for flagship infrastructure fund – sources.
(Reuters) – Buyout company KKR & Co Inc plans to raise $ 12 billion for its flagship global fund, which will invest in infrastructure assets such as oil and gas pipelines and renewable energy projects, according to people familiar with the matter .
The fundraising comes as President Joe Biden urged US lawmakers to support a trillion dollar new spending plan on projects to restore crumbling American infrastructure.
KKR began raising the KKR Global Infrastructure Investors IV fund late last year along with its other flagship funds, including the North American private equity fund, which aims to attract more than $ 15 billion.
A KKR spokeswoman declined to comment.
Private equity firms tend to raise successor funds that are 10-20% larger than their predecessors. However, KKR’s most recent global infrastructure fund would be significantly larger than that of KKR Global Infrastructure Investors III, which amassed $ 7.4 billion from investors in 2018.
The previous funds, KKR Global Infrastructure Investors II and KKR Global Infrastructure Fund, raised $ 3.1 billion and $ 1 billion, respectively.
KKR’s third and second infrastructure funds made 0.97 times and 1.49 times the money of their investors in March 2020, respectively, according to the New York Police Pension Fund.
KKR’s infrastructure funds are managed by Raj Agrawal. Recent investments include Canadian pipeline company Coastal GasLink, Florida-based utility Nitrogen Renewables and Indian energy transmission developer IndiGrid Trust.
Reporting by Chibuike Oguh in New York; Adaptation by Nick Zieminski
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