KKR raises $6bn for record Asia infrastructure fund

According to two persons familiar with the situation, KKR & Co. Inc. raised roughly $6 billion for its second Asia Pacific infrastructure fund at the first close, making it the largest private equity fundraising ever for the sector in the area.

The fund received record pledges just seven months after it was established, underscoring investors’ desire to purchase diversified infrastructure assets at a time when rising inflation and interest rates have made it difficult to close deals in many industries.

One of the individuals claimed that the most recent financing came after the American private equity company used the majority of the $3.9 billion raised in its first Asia infrastructure fund, which declared its final close in January 2021.

KKR chose not to comment. Given that the data has not been made public, the sources declined to give their names. The first close of a private equity fundraising process is seen as a significant turning point that shows the fund has attained a minimum threshold and is ready to begin investing.

In order to gain exposure to assets that are thought to generate steady, long-term, and inflation-beating returns, sovereign wealth funds, endowments, insurance companies, pension funds, and family offices throughout the world have been pouring money into infrastructure vehicles.

BlackRock Inc. announced on Tuesday that it had raised $4.5 billion of the $7.5 billion total it sought to raise for a new global fund to invest in infrastructure assets for initiatives focusing on climate change.

At the final closure of its third Asia Pacific regional infrastructure fund, Macquarie Asset Management reported in May that it had secured investor commitments totalling more than $4.2 billion, above the fund’s $3 billion target.

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