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KKR’s second global impact fund raises $2.8 billion, focused on sustainability and social equity

KKR & Co Inc, a private equity firm, amassed $2.8 billion following completion of the raise of its second global impact fund dedicated to investments that advance sustainability and social equity, reported Reuters.

Ken Mehlman and Robert Antablin who are the fund’s co-heads, in an interview with Reuters said the firm attracted commitments from investors for more than double its first $1.3 billion impact fund raised in 2020. They stated that more opportunities to deploy capital led to this outcome.

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Ken Mehlman said, “The resiliency of our portfolio and growth in our strategy reflect the tailwinds in our business.” Mehlman further added that the tailwinds include the transition to cleaner forms of energy, the recycling of resources in the supply chain and the push by companies to develop their workforce.

Robert Antablin said, “We target middle-market private equity returns in line with our other businesses.”

Also read: KKR to invest 2,069.50 crore in Reliance Retail, increase stake from 1.17% to 1.42%

Investments must advance one or more of the United Nations 17 sustainable development goals in a measurable way in order to fall within the impact fund’s scope. In majority of impact fund’s investments it is the sole KKR fund that will be participating although the impact fund can invest in companies alongside KKR’s other private equity funds. 

KKR’s global impact team has made 18 investments so far which grew from a team of four people when it launched in 2018 to over 20.

KKR’s global impact team investments include CoolIT Systems, which permits data centres to reduce energy use with cooling liquid; CMC Packaging Automation, which curbs consumption of packaging materials through custom designs; Graduation Alliance, which helps high school dropouts earn high school diplomas; and Five Star, which promotes economic opportunity by lending to small businesses in southern and central India.

Also read: KKR to invest additional $250 million in India’s Serentica Renewables

According to New York-based firm’s most recent quarterly earnings revelations, KKR’s first impact had more than doubled its investors’ money as of the end of June.

(With inputs from Reuters)

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Updated: 06 Nov 2023, 01:54 PM IST

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