Global investment firm Kohlberg Kravis Roberts has closed its infrastructure and natural resource funds. The firm’s energy and infrastructure platform now manages $4 billion in non-private equity related assets.
Global investment firm Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, “KKR”) today announced that with the closes of its infrastructure and natural resource funds, the firm’s Energy & Infrastructure platform now manages $4 billion in non-private equity related assets.
“KKR’s global energy and infrastructure business has a broad set of operational, technical and financial capabilities to bring to all of our investments,” said Marc Lipschultz, Global Head of KKR’s Energy and Infrastructure business. “These funds, which target attractive opportunities outside of the private equity arena, benefit from our global footprint, extensive and deep resources and strong track record of investing in this space,” he continued.
The infrastructure fund had a final close on over $1 billion, which, in addition to the $1.3 billion of already committed infrastructure-related separate accounts, brings total infrastructure committed capital to $2.4 billion. The natural resource fund also had a close, bringing total commitments to $1.25 billion, which, in addition to $350 million of capital outside the fund, brings total committed capital for natural resources to $1.6 billion. Both funds include committed capital from a diverse group of global investors, including insurers, pension plans, and family offices.
KKR’s infrastructure fund has a broad mandate centered on global infrastructure, particular areas of emphasis include midstream energy, renewable energy, utilities (water, power and gas), social infrastructure and selected transportation-related infrastructure.
Recent infrastructure investments include an operating wind-powered electricity generation business in France in partnership with Sorgenia, a leading Italian operator; an operating solar generation business in partnership with T-Solar, one of the top solar developers and operators globally and SunTap, a partnership with Google and Recurrent Energy that manages a global portfolio of solar photo-voltaic facilities. The fund has also made an investment in Saba Infraestructuras, a leading operator of car parks and logistics parks. Prior to forming the fund, KKR’s infrastructure platform also acquired a 23.44% stake in the Colonial Pipeline Company, the largest refined products pipeline in North America.
“There is a growing need for capital to support investment and growth in critical public and private infrastructure. Given its long term and predictable cash flow, coupled with the growing need for investment, we continue to believe that infrastructure is an attractive, stable asset class, and we are excited about the opportunities that lie ahead,” said Raj Agrawal and Jesus Olmos Clavijo, Heads of North American Infrastructure and European Infrastructure, respectively.
KKR’s natural resources strategy (“KNR”) seeks to acquire and operate oil and gas properties that are largely comprised of proved, developed producing reserves and operate them effectively and efficiently. To date, KNR has completed six separate transactions, acquiring over $950 million of assets in core operating regions in the Barnett Shale, East Texas, North Louisiana, Mississippi and the Texas Gulf Coast. With over $1 billion of committed capital remaining and available for investment, KNR has the capacity to purchase almost $2 billion of additional properties and will seek to acquire high-quality, producing assets both within and outside its core operating areas over the next few years.
“The commercialization of unconventional oil and gas reservoirs has created new opportunities to grow and develop our domestic energy resources. With KNR, we seek to help operators focus their capital and resources on these exciting opportunities by acquiring their non-core assets, which provides them with capital to re-invest in attractive growth opportunities,” said Jonathan Smidt, a Member of KKR and Head of KKR Natural Resources.
KNR’s existing oil and gas properties are operated by Premier Natural Resources (“Premier”), a Tulsa, Oklahoma-based team that was founded in June 2006 by former executives of Vintage Petroleum. Premier currently operates a portfolio of assets located in the Barnett Shale, the Texas Gulf Coast, the Permian Basin, Louisiana, and Mississippi and has extensive experience operating assets in most of the major producing basins in the United States.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $62.3 billion in assets under management as of March 31, 2012. 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 KKR -0.08% . For additional information, please visit KKR’s website at www.kkr.com .
SOURCE: Kohlberg Kravis Roberts & Co. L.P.