KKR infra fund holds second close on $515m

Private equity firm Kohlberg Kravis Roberts has held a second close on its debut infrastructure fund on $515 million, according to a market source familiar with the firm.

The close, which happened last month, follows a first close on $225 million that KKR achieved on the fund in the first quarter. During a conference call announcing the firm’s third quarter earnings in November, executives said they expected to raise another $275 million by year’s end.

The close also comes as a number of infrastructure-focused fund managers seem to be enjoying greater success with their fundraising. Just last week, New York-based fund manager Highstar Capital reached a first close on its fourth infrastructure fund on $750 million and Energy Investors Funds, a power sector-focused fund manager, said in a regulatory filing it had secured $536 million for its fourth fund.

Sources added in previous interviews that EIF had collected more than $1 billion, though some commitments have yet to close.

KKR’s second close on the fund also boosts its total infrastructure assets under management to more than $1.6 billion. That’s because, aside from the $515 million KKR has secured for the fund so far, the firm manages a $1.1 billion separate account on behalf of Korea’s $270 billion National Pension Service, which bought a 23.44 percent stake in Colonial Pipeline alongside KKR in October.

KKR has been steadily building out its activities across the alternative asset classes, and in September hired veteran European fundraiser Elizabeth O’Reilly from LBO France in an effort to diversify and grow its LP roster from its traditional base of more than 300 limited partners. 

Since late 2008, KKR has also tried to recruit a senior private equity real estate team, and is currently believed to be bidding to acquire the ING Real Estate Investment Management platform, sources have said.