Kohlberg Kravis Roberts has closed its KKR Energy Income and Growth Fund on $2 billion, according to a statement.
The firm’s debut energy and income fund had reportedly been targeting $1.5 billion and will make joint venture drilling investments, acquiring minerals and royalties and pursuing investments associated with oil and gas resources in North America. The fund received strong backing from new and existing investors, including pensions, sovereign wealth funds, insurance companies, foundations and endowments, the statement 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,” Marc Lipschultz, KKR’s global head of energy and infrastructure, said in the statement.
The energy income and growth strategy KKR has deployed more than $350 million of equity in eight investments through the strategy.
Since 2009, KKR has committed about $4.2 billion to oil and gas investments through its investment funds, through buyouts, minority stakes and joint ventures. KKR’s most recent investment in the sector came last December when the firm invested C$250 million ($227 million; €165 million) in crude oil transportation company Torq Energy Logistics.
Other energy-related portfolio companies include exploration and production company Samson Resources and Colonial Pipeline, which delivers liquid petroleum products through an underground pipeline, according to the firm’s website. KKR manages $8.7 billion in energy and infrastructure-related assets.