KKR makes 10% GP commitment to Americas-focused fund

The global investment firm has closed its 12th flagship vehicle on almost $14bn and will focus on investments in the US, Canada and Mexico.

KKR has announced the final close of its Americas XII Fund – the largest private equity vehicle raised for investments in the region – at $13.9 billion and has itself committed almost $1.4 billion to the vehicle.

The buyout fund took 18 months to raise and will focus on investments in the US, Canada and Mexico.

“In today’s increasingly complex world, we are pleased that [our investors] share our enthusiasm for the opportunities that lie ahead in the Americas, in particular the US where we anticipate significant long-term investment opportunities and where we have been investing for more than four decades and six economic cycles,” Alexander Navab, KKR’s head of Americas private equity, said in a statement announcing the fund close.

Americas XII received commitments from a diverse group of new and existing global investors including public and corporate pensions, sovereign wealth funds, insurance companies, endowments, private banking clients, family offices and high net worth individuals, according to the statement.

The firm’s GP commitment comes from a mix of KKR’s balance sheet capital and employee commitments.

As of the start of the year, KKR had approximately $13 billion invested or committed to its own funds and portfolio companies, according to its 10-K annual report to the US Securities and Exchange Commission. $7.5bn of this came from the firm’s balance sheet, $1.7 billion comprised “personal investments” and a further $1.2 billion comprised “additional commitments from personal investments.”

Several limited partners in the fund made commitments of $500 million or more, including New York State Common Retirement Fund, Oregon Public Employees’ Retirement System and Oregon State Treasury, according to PEI data. Washington State Investment Board made a $750 million commitment.

KKR is committing more money into this fund than any other private equity fund in the firm’s history because alignment is “the best demonstration of our partnership,” Alisa Amarosa Wood, head of private market products at KKR, said in the statement.

KKR raised $29 billion in 2016, boosted by commitments to its Americas XII Fund.

Americas XII’s predecessor, the 2009-vintage North America XI, is fully deployed and generated a net internal rate of return of 18.1 percent and a net multiple of 1.4x as of 31 December, according to the statement.