KKR closes US$3.9 billion Asia-Pacific Infrastructure Fund
Focus on critical infrastructure with low volatility, strong downside protection
11 Jan 2021 | The Asset

Global investment firm KKR announced the final close of KKR Asia-Pacific Infrastructure Investors SCSp, a US$3.9 billion fund focused on infrastructure-related investments across Asia Pacific.

“Asia-Pacific contains some of the most favourable macroeconomic dynamics in the world, and that the region is expected to account for more than half of the world’s economic growth in the coming years,” says Ming Lu, head of KKR Asia-Pacific. “However, the demand to develop or upgrade critical infrastructure assets outpaces the available public funding in many markets. Private capital is playing an increasingly important role to fill the gap in the region, and through our new fund, KKR is committed to investing in essential infrastructure solutions over a long-term horizon.”

The fund, which will focus on critical infrastructure with low volatility and strong downside protection, has a broad investment mandate across emerging and developed Asia-Pacific sectors, including waste, renewables, power and utilities, telecommunications and transportation infrastructure.

At the time of close, the fund reached its hard cap to become the largest pan-regional infrastructure fund to have been raised for Asia-Pacific. Its size aligns with KKR’s expectations for infrastructure deal flow in the region through the long-term horizon. “Infrastructure is a key priority for KKR in Asia-Pacific,” points out David Luboff, head of Asia-Pacific infrastructure at KKR.

The fund, which was significantly oversubscribed and closed at its hard cap, received strong backing from a diverse group of prominent global infrastructure investors, including public and corporate pensions, sovereign wealth funds, insurance companies, endowments, private banking platforms, family offices and high-net-worth individual investors.