KKR Amasses $1.3 Billion for Its Debut Global Impact Fund

(Bloomberg) -- KKR & Co. raised $1.3 billion for its first global impact fund, one of the largest of its kind, as the alternative asset manager steps up investments in businesses tackling environmental and social challenges.

The fund is being backed by pensions, family offices, institutional investors and high-net-worth individuals, KKR said Wednesday in a statement announcing the close of capital raising. The New York-based firm is investing $130 million of its own capital alongside clients.

Private equity firms have been stockpiling cash as they seek to play a bigger role in the fast-growing socially responsible investing area. The fund will focus on themes including climate change, clean water, workforce development, waste, mobility, sustainability and infrastructure improvements that contribute to the United Nations Sustainable Development Goals.

Co-led by KKR executives Ken Mehlman and Robert Antablin, the Global Impact Fund has been gathering commitments since early 2018. It exceeded its original $1 billion goal last year. The 12-person team has already made a handful of investments, including acquiring stakes in Indian recycling firm Ramky Enviro Engineers Ltd. and Singapore-based energy-efficiency company Barghest Building Performance Pte.

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