KKR collects $515m for infrastructure

The second close follows a first closing on $225m the firm achieved in the third quarter and puts it ahead of expectations for its year-end total.

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 told Infrastructure Investor in prior interview that EIF had collected more than $1 billion, though some commitments have yet to close.

Highstar is targeting $3.5 billion for its fund and Energy Investors is targeting $1.75 billion. KKR partner Scott Nuttall said on a conference call in early November “we do not have a target” for the infrastructure fund, though Infrastructure Investor has previously reported the firm was hoping to raise at least $2 billion for the fund, which is called KKR Global Infrastructure Investors.

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’s infrastructure team is led by Marc Lipschultz and includes Reinhard Gorenflos, Jesús Olmos Clavijo, John Bookout, Simon Hipperson and Raj Agrawal in senior leadership roles, according to the firm’s website.