KKR returns to market with sophomore impact fund

The firm raised $1.3bn for its 2018-vintage KKR Global Impact Fund, of which $300m was committed by New York State Common Retirement Fund.

KKR has returned to market with its second impact investing fund.

The New York-headquartered firm registered KKR Global Impact II in Luxembourg in June, according to filings seen by affiliate title New Private Markets.

It’s unclear how much the fund is targeting. KKR declined to comment.

KKR raised $1.3 billion for its 2018-vintage Global Impact Fund, of which $300 million was committed by New York State Common Retirement Fund, according to data from Private Equity International. The vehicle, which reached final close in February 2020, included an 8.1 percent GP commitment, per KKR’s latest quarterly report.

The strategy is led by Robert Antablin and Ken Mehlman.

Fund I had deployed $552 million as of 31 March, valued at a 1.4x gross multiple of invested capital and generating a 69 percent gross internal rate of return. It has backed 11 companies, including US cybersecurity awareness firm KnowBe4, Indian environment management business Ramky Enviro Engineers and UK waste processer Viridor.

KKR’s initial foray into impact was first reported by PEI in 2018.

The firm joins a number of peers in market with impact strategies. BlackRock launched its debut private equity impact vehicle earlier this month, as NPM reported Wednesday. TPG is seeking $5 billion to invest across a range of strategies to approach the global climate crisis, and Apollo Global Management has reportedly set a $1 billion target for its debut social impact fund.

Europe’s SWEN Capital Partners hired a duo earlier this month to launch an ocean impact venture. In May, Apax Partners hired Alykhan Nathoo, a 10-year partner at Helios Investment Partners, to co-lead a new global impact fund strategy.