Global investment firm KKR has reached a final close of KKR Energy Income and Growth Fund I. The fund has raised $2 billion focused primarily on investing in the development of North American unconventional oil and gas resources.
KKR, a leading global investment firm, today announced the final closing of KKR Energy Income and Growth Fund I (“EIGF” or the “Fund”). EIGF (together with related co-investment vehicles) represents a $2.0 billion strategy focused primarily on investing behind the development of North American unconventional oil and gas resources.
The Fund seeks to generate current income and capital appreciation while seeking to provide inflation protection through commodity exposure. The EIGF strategy received strong backing from a diverse group of new and existing KKR investors globally, including pensions, sovereign wealth funds, insurance companies, foundations, endowments, private banking platforms, family offices and individual investors.
Commenting on EIGF, Marc Lipschultz, KKR’s Global Head of Energy & Infrastructure, said, “The energy revolution has created an unprecedented opportunity set, and we are seeing many ways to partner with companies to help develop these important resources. Pursuing asset-level and structured investments, we intend to deploy creative and flexible structures that seek to best meet the needs of our partners while delivering benefits associated with real asset ownership. We appreciate the diversity and support of new and existing KKR investors.”
This strategy is focused on making joint venture drilling investments, acquiring minerals and royalties, acquiring legacy producing assets and pursuing opportunistic investments associated with oil and gas resources. To date, the EIGF strategy has deployed over $350 million of equity in eight investments.
KKR has invested or committed approximately $4.3 billion to oil and gas investments since 2009 through its investment funds and vehicles spanning buy-outs, minority equity investments, joint-ventures, and various asset-level and structured investments, making KKR one of the more active private-market investors in the North American oil and gas space across this period. In 2009, KKR made its first investment in unconventional natural gas assets through its investment in East Resources, a leading resource owner in the Marcellus Shale. In 2010, KKR made its first investment in unconventional crude oil assets, through its partnership with Hilcorp Energy in the Eagle Ford Shale.
Today, the firm manages $8.7 billion in energy and infrastructure related assets. KKR’s energy and infrastructure team is composed of 40 investment professionals globally, 24 of which are based in North America.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $94.3 billion in assets under management as of December 31, 2013. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with investors through its client relationships and capital markets platform. KKR is publicly traded on the New York Stock Exchange (NYSE:KKR) and “KKR”, as used in this release, includes its subsidiaries, their managed investment funds and accounts, and/or their affiliated investment vehicles, as appropriate. For additional information, please visit KKR’s website at www.kkr.com.