KKR Plans Infrastructure Strategy for High-Net-Worth Clients

By Allison McNeely

(Bloomberg) — KKR & Co. is seeking regulatory approval to give accredited individuals the ability invest in the private equity giant’s $49 billion infrastructure business.

The entity, a holding company known as KKR Infrastructure Conglomerate or K-Infra, will allocate about 85% of assets to the firm’s global infrastructure investments, with the rest in cash and other liquid instruments, according to a Securities and Exchange Commission filing Friday. K-Infra will pay quarterly distributions and periodically be able to repurchase a limited number of shares from investors.

KKR’s platform includes its Global, Asia Pacific and Diversified Core infrastructure strategies, according to a September investor presentation. The Global Infrastructure Investors III fund had a net internal rate of return of 7.9% as of June 30, New York-based KKR said in its most recent quarterly filing.

Alternative asset managers are seeking ways to attract retail investors as institutional clients such as endowments and pension funds run up against limits on how much they can allocate to private equity. KKR manages about $70 billion in private wealth assets, investor relations chief Craig Larson told analysts during the firm’s second-quarter earnings call. It launched a real estate investment trust last year and a credit fund in 2020, both targeting accredited investors.

KKR is expected to introduce infrastructure and private equity strategies for individual investors in the next two to three quarters, Larson said on the Aug. 2 call.

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Source: BNN Bloomberg