KKR is going to launch its three largest funds, one of which will be dedicated to infrastructure, in the next six to 18 months as the firm looks to scale its business, Scott C. Nuttall, co-president and co-COO of KKR, said during an earnings call on 25 July.
KKR held a USD 7.4bn final close for its third dedicated infrastructure fund, KKR Global Infrastructure Investors III, in September 2018.
Fund III, in partnership with BlackRock Infrastructure, recently completed the USD 4bn acquisition of a 40% stake in Abu Dhabi National Oil Company’s crude oil pipeline. The two parties each took a 20% stake.
Fund III has an investment period from 2018 to 2024. It has USD 6.24bn of uncalled capital and has invested a total USD 905.7m as of 2Q19.
The company declined further comment on the new fund.
The USD 3.04bn KKR Global Infrastructure Investors II, with an investment period from 2014 to 2018, has invested USD 3.01bn. The fund recorded a gross return of 13% in the last 12 months.
The USD 1.04bn Fund I is now fully invested and divesting as well, according to Inframation Deals.
The flagship Energy Income & Growth Fund is flat over the last 12 months compared to a 36% decline in S&P’s Oil and Gas E&P Select Index.
KKR currently manages a total of USD 13bn of infrastructure assets comprising 5% of its total asset. It is now fundraising for infrastructure in Asia.