KKR closes first Asia-Pacific infrastructure fund at US$3.9 billion as coronavirus boom in public spending brews

The US investment group put about US$300 million in the fund alongside external investors from its own balance sheet and employees

KKR’s Asia-Pacific infrastructure portfolio companies include India Grid Trust and Virescent Infrastructure

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First Gen, part of KKR’s Asia-Pacific portfolio of infrastructure investments, is a power generation company in the Philippines with an installed capacity of 2,763MW. Photo: First Gen, LinkedIn

Published: 2:00pm, 11 Jan 2021Updated: 8:05pm, 11 Jan 2021

US investment group KKR & Co said it has closed its first US$3.9 billion fund focused on infrastructure investment across Asia-Pacific, a record size for the region.

The fundraising comes at a pivotal time for the infrastructure sector as governments globally call for more spending on infrastructure, from bridges to power grids, to help kick-start economies subdued by the Covid-19 pandemic. Interest rates remain low, meaning financing is cheap.

“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,” said Ming Lu, head of KKR Asia-Pacific in a statement.

The fund, called KKR Asia-Pacific Infrastructure Investors, will invest across both emerging and developed parts of the region, in sectors including waste, renewables, power and utilities, telecommunications and transport infrastructure.

China has earmarked 10 trillion yuan (US$1.4 trillion) to invest in digital infrastructure, and other Asian governments are also planning big fiscal stimulus packages to bolster economic activity.

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